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BlueBay copies Norway oil fund ESG-policy for new high yield bond fund

BlueBay Asset Management has launched the Global High Yield ESG Bond Fund, incorporating the ESG policy used by Norway’s oil fund.


PA Europe

The new Ucits fund is based on the existing BlueBay Global High Yield Bond Fund, complemented with ESG negative (excluding companies that produce controversial weapons, tobacco and coal-based energy) and conduct-based screening based on the practice of the Norwegian Government Pension Fund Global, the official name of Norway’s sovereign wealth fund. 

Follow the leader

The incorporation of the oil fund’s ESG policy marks a first for BlueBay. It happened on the request of the seed client in the fund, the Norwegian public sector pension fund PKH. 

“But it’s also because we wanted to ensure we developed a fund which would have broad appeal for the institutional investor base. The Norwegian Government Pension fund is a leading sovereign wealth fund and is also widely considered to be, and is highly respected as, a leading asset owner in terms of its approach to ESG,” said a BlueBay AM spokesperson. She added: “As such, we consider the ESG related guidelines of the fund to be a good global benchmark of what is considered good practice from an ESG screening perspective.” 

Implementing the oil fund’s ESG policy is a straightforward exercise, as it is readily available on the oil fund’s website (you can consult it here). The same goes for its restrictions list.