Rathbones has added to its fixed income lineup with the launch of the Rathbone Greenbank Global Sustainable Bond fund.
The strategy, which launches on Thursday, will focus on global credit and will be managed by head of fixed income Bryn Jones (pictured), and fund manager Stuart Chilvers.
Rathbone Greenbank’s research team will provide independent sustainability screening of securities.
Using the same sustainability framework as the Rathbone Greenbank Global Sustainability fund and the Rathbone Greenbank Multi-Asset Portfolios, the research team can veto a bond’s inclusion in the portfolio if it fails to pass the screening.
The fund will sit in the IA Sterling Strategic Bond sector and comes with a 40bps OCF cap.
Jones said: “With more than 20 years track record investing in ethical bonds, we feel this is a natural extension to our range. Regulation is leading to a higher cost of capital for ESG laggard companies and carbon intensive industries.
“Further, stricter disclosure requirements are making evaluation of high yield and emerging market debt opportunities significantly easier in terms of meeting our sustainability criteria. We believe adopting this global opportunity set makes sense when we can see diverging core inflationary pressures across the globe.”