Union Bancaire Privée, UBP SA (UBP) has widened its emerging market (EM) fixed-income offering with a new ESG sovereign local-currency debt strategy: UBAM - EM Sustainable Local Bond.
The fund, which meets the requirements of Article 8 of the EU’s Sustainable Finance Disclosure Regulation (SFDR), will seek to improve ESG factors by favouring investments in social, green and supranational issuers.
UBAM - EM Sustainable Local Bond invests primarily in bonds that have been issued by sovereign and supranational entities domiciled in, or linked to, emerging markets and are denominated in local currencies. It is actively managed and seeks to capture the incremental yield and attractive return potential found in EM local-currency debt. This segment is currently the largest, i.e. 82 percent, in EM debt, accounting for over USD 24 trillion in assets, and is also dominating new issuance. As emerging markets mature and grow, their ability to finance themselves through bonds issued in local currencies will increase, and, consequently, so will opportunities for investors.