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Blue Orchard offers EM impact bond fund

Ucits-compliant impact bond fund seeks to address UN Sustainable Development Goals in emerging markets


David Robinson

Swiss boutique asset manager Blue Orchard Finance has launched a Ucits-compliant Emerging Markets SDG Impact Bond Fund to offer 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 group said.

The Blue Orchard 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 (SDG).

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 and is accessible to investors with a variety of share classes in different currencies.

“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,” said Patrick Scheurle, CEO of Blue Orchard.

Blue Orchard said it applies a bottom-up credit selection governed by a proven risk management framework. In addition to financial analysis, Blue Orchard conducts a social performance analysis on all investments based on the firm’s proprietary social performance assessment tool.

BlueOrchard has assets under management of about €4.4bn ($5bn) across 80 emerging and frontier markets.