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ACTIAM launches Sustainable Emerging Markets Debt Fund

21 November 2019 , Unique approach optimises impact in emerging markets

Asset manager ACTIAM has launched the ACTIAM (L) Sustainable Emerging Markets Debt Fund. The fund optimizes the financial and social return by looking at the fundamental strength - size and earning capacity - of the different economies (instead of market weights). When assessing country risk and the long-term economic growth opportunities, a number of socio-ethical issues such as human rights, political freedom, good governance and controversial weapons are taken into account.

Diversification is key

The ACTIAM (L) Sustainable EMD Fund actively invests in government bonds and bonds from state-owned companies in emerging markets. All investments are given an ESG score. The ESG score of the portfolio will always be higher than the ESG score of the benchmark. The fund also aims to obtain a return which is at least equal to the benchmark. By looking at the fundamental strength of the economy (instead of market weight), a more diversified portfolio is constructed.

Focus on client demand

Ruben Smit, portfolio manager at ACTIAM: "We see a clear client demand for more sustainable investment portfolios. In particular in the area of Emerging Markets Debt, sustainable investing still can gain ground. This fund integrates ESG criteria in the investment process, with the emphasis on social criteria and good governance. We do not invest in state-owned oil and gas companies. The fund really shows that financial and social returns go hand in hand."

Experienced team

The ACTIAM Sustainable EMD Fund is a UCITS fund, which is being managed by Ruben Smit en Pim Burggraeve. They are part of the wider Fixed Income & Multi Asset team. The team consists of 18 professionals with an average experience of 17 years and is being headed by Johan Idema. This team works closely together with the ACTIAM impact investing team; a team of 8 professionals with an average experience of over 14 years in investing in emerging and frontier markets.