The following is a press release from BlueOrchard:
BlueOrchard launches UCITS Impact Bond Fund to address UN Sustainable Development Goals in emerging markets
Zurich, 10 December 2018 – Swiss-based impact investment manager BlueOrchard Finance Ltd (“BlueOrchard”) has launched a UCITS-compliant Emerging Markets SDG Impact Bond Fund to grant retail and institutional investors access to a “liquid impact fund”. The Fund is designed for investors that seek a scalable and liquid alternative to traditional microfinance funds.
The BlueOrchard UCITS-Emerging Markets SDG Impact Bond Fund invests in bond issuances from corporations and public/private financial institutions that finance or engage in impact activities which advance the UN Sustainable Development Goals (SDGs). The fund will invest in a diversified portfolio in emerging and frontier markets with the goal of providing retail and institutional investors with a scalable, impact oriented alternative to traditional fixed income products. The Fund, registered in Luxembourg and managed by BlueOrchard Asset Management (Luxembourg), SA is accessible to investors with a variety of share classes in different currencies to suit investor requirements.
“Our investors have expressed considerable interest of late in a vehicle that combines financial and social returns with liquidity. We have responded by creating this Fund and believe that it presents an excellent opportunity for both BlueOrchard and our investors to further engage in key emerging markets and expand our impact,” said Patrick Scheurle, CEO of BlueOrchard.
“As a company founded by initiative of the UN, we are extremely proud to launch an impact fund dedicated to helping advance the UN Sustainable Development Goals in emerging markets,” said Peter A. Fanconi, BlueOrchard’s Chairman of the Board.
The Fund is managed by an experienced team with a long track record of successful debt investments in emerging and frontier markets. They combine a unique field presence, proprietary rating methodologies and broad hedging capabilities to deliver innovative impact investment products. BlueOrchard applies a robust country selection process and rigorous bottom-up credit selection governed by a proven risk management framework. In addition to financial analysis, BlueOrchard conducts a social performance analysis on all investments based on “SPIRIT”, the firm’s proprietary social performance assessment tool.
Building a financial system that supports sustainable and climate-smart growth has taken the center stage of global efforts to advance and achieve the SDGs. To address the growing investment gap in emerging and frontier markets, urgent and concerted action is needed. For BlueOrchard, closing this gap has been our mission since day one. The company has focused its mission and its investment strategies on empowering people in the developing world since 2001 and has deployed more than USD 5bn in more than 80 markets.