EMD December 2024 Review and Outlook: US rate expectations dialled back
Our summary of developments in emerging market debt in December 2024 and outlook.
abrdn SICAV I - Climate Transition Bond Fund
Mitigating causes of climate change and helping society adapt to the consequences.
Important information.
Important information
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.