Abrdn adds to sustainable investing with EM debt fund

Abrdn has launched the Emerging Markets Sustainable Development Corporate Bond fund, which will sit within its sustainable development range.

The strategy, which is an Article 9-compliant fund, will focus on debt from companies that positively contribute to the UN’s 17 Sustainable Development Goals (SDGs). These include climate change, growing social inequality, and unsustainable production and consumption.

The fund will be overseen by abrdn’s head of emerging market corporate debt Siddharth Dahiya (pictured), who is Citywire + rated, as well as abrdn investment director Samuel Bevan and Kevin Craig, who is part of the emerging market debt team.

The strategy launches with $10m in seed capital and will have over 50 holdings spread across EM corporate and frontier sovereign bonds. As the portfolio grows, abrdn expects the strategy to become more diversified, targeting between 90-120 issuers.

Needs are especially acute in financial inclusion, food security and access to healthcare, as well as in basic infrastructure and climate change mitigation and adaptation, the company said, citing the UN Conference on Trade and Development. 

‘This new strategy is among one of the first in the EMD marketplace to have a sustainable investment objective, complementing abrdn’s already established Article 9 fund range and broadening the pool of our sustainable investment products on offer to our clients,’ Dahiya said.