Can emerging markets leapfrog developed economies?
Emerging markets are underpinned by strong fundamentals and undemanding valuations and are likely to be supported by US rate cuts, which are expected to start some time in 2024.
abrdn SICAV I - Climate Transition Bond Fund
Mitigating causes of climate change and helping society adapt to the consequences.
View the fund guideOpens in new windowImportant information.
Important information
- The Fund’s investment objective is long term total return to be achieved by investing at least 90% of its assets in Investment Grade and SubInvestment Grade debt and debt-related securities issued worldwide, including in Emerging Markets, that support the transition to a low carbon economy and society’s adaptation to climate change.
- The Fund is therefore exposed to risks related to debt securities, investing in Sub-Investment Grade debt securities, investing in emerging markets, ESG investment policy, volatility strategy, exchange rates and securities lending transactions.
Why invest in climate transition?
Over US$130 trillion committed to net-zero projects globally
Tightening environmental regulations allied to growing consumer demand have driven commitments of over US$130 trillion into net-zero projects [1], creating a once-in-a-generation investment opportunity.
All-in global investment grade credit yields of 5.4%
All-in global investment grade credit yields of 5.4% are near 10-year highs [2], with firms that mitigate transition risks or offer sustainable products well-placed to deliver attractive returns.
Bond prices have fallen to levels not seen in nearly 10 years
Bond prices have dropped to levels not seen in nearly 10 years while forecast policy changes promise to drive further value for bondholders [3]
Key benefits investing in abrdn's Climate Transition Bond
Above 6.6% all-in yield with minimum BBB-rating on average
Unconstrained exposure across global investment grade, high-yield, emerging markets, municipal and green bonds for an all-in yield above 6.6%, with minimum average BBB- rating. [4]
Unique climate investment process built to enhance return
We combine proprietary climate tools and research with our best investment ideas to target impactful returns, using our ESG expertise to enhance outcomes. We engaged issuers in 82 sustainability meetings in 2023.
Investing across three climate pillars
- Leaders (40-60%) - Leading emissions reducers in high- emitting sectors.
- Solutions (40-60%) - Products/services helping wider economy to decarbonise.
- Adaptors (5-20%) - Companies and countries addressing the physical risks of climate change.
[1, 3] Source: abrdn, 30 November 2023.
[2, 4] Source: abrdn, 30 November 2023. A positive yield does not imply a positive return.
Fund information
Key documents
Our recent achievement
Environmental Finance - Sustainable Investment Awards
In 2023 we were awarded the ESG fixed income fund of the year - Global.