Discover the Responsible Horizons Euro Corporate Bond Fund

Combining Insight's long-standing euro credit expertise with a rigorous ESG framework

The Responsible Horizons Euro Corporate Bond Fund seeks to generate a total return comprised of income and capital growth by investing primarily in a broad range of Euro-denominated debt and debt-related securities and related financial derivative instruments, whilst taking environmental, social and governance (“ESG”) factors into account.

$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

Why invest in this Fund?

Managed by a market-leading responsible investor: Insight has a long-established focus on responsible investment, with ESG factors having been fully integrated into the investment process and credit analysis for many years.
Specialist active fixed income manager: well resourced credit team complemented by wider fixed income group and dedicated ESG team.
Established strategy: the underlying strategy, on which the Responsible Horizons Euro Corporate Bond Fund is based, has been managed since 2005.
Sophisticated management of ESG factors focusing on impact as well as exclusions: ESG screening supplements a positive allocation towards higher scoring, best in universe, ESG issuers and a structural allocation to positive impact instruments and issuers.
Commitment to engagement: where a company demonstrates a deteriorating ESG profile, Insight will consider engaging with management with a view to influencing their future behaviour. If no improvement is observed, the Fund will reassess its holdings in the bonds.

$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

Responsible Horizons Euro Corporate Bond - Funds 3D

High returns are no longer the only priority when it comes to investing, these days it’s also about the environmental and societal impact.

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The Responsible Horizons Euro Corporate Bond Fund focuses on the top ESG performers and aims to enable investors to get the best of both worlds: meaningful returns while investing responsibly.
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Responsible Horizons Euro Corporate Bond - Q&A

In this Q&A, fund manager Lutz Engberding outlines the Fund's investment aims, approach, the types of investments the Funds excludes and the potential risks investors need to consider when investing responsibly.

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New paths to responsible investment in European corporate bonds.
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Powered by Prime

Prime is Insight Investment’s proprietary environmental, social and governance (ESG) rating system, which uses extensive global data and in-depth analysis to highlight key ESG risks.

The Fund’s portfolio managers and analysts use Prime ratings to support their investment decisions, inform their engagement with companies, and to build portfolios with sustainability goals.

The ratings generated by Prime will help to guide the Fund’s investments in line with its stated ESG criteria, with ratings defining whether companies are best-in-class or worst-in-class, and indicating deterioration or improvement with regard to ESG issues.

Focused on an ESG-optimised universe

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  • The Fund applies exclusions and screens focused on various ESG and sustainability factors that aim to avoid worst-in-class industry players and unsuitable sectors.

  • The exclusions leave the Fund with an ESG-optimised universe from which to build the portfolio.

Seeking a positive impact

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  • Within the ESG-optimised universe, the Fund tilts the portfolio in favour of companies with higher ESG ratings.

  • The Fund overweights issuers deemed to have a positive social impact through use of ‘positive impact’ bonds. This includes bonds issued by companies with material revenue derived from sources aligned with the UN Sustainable Development Goals, as well as impact labelled use-of-proceeds bonds that pass Insight’s impact assessment framework.

  • The Fund targets a carbon intensity below the level of the benchmark.

Engagement driving analysis and improvement

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  • Company engagement is an ongoing part of the investment process underlying the Fund. When deteriorating ESG performance in a holding is detected, Insight will consider engaging with management with a view to influencing their future behaviour. If no improvement is observed, the Fund will reassess its holdings in the bonds.

Targeted exclusions for ESG-optimised universe

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  • All ‘worst-in-class’ companies based on ESG criteria

  • All ‘worst-in-class’ companies based on carbon intensity criteria

  • All companies in breach of UN Global Compact directives

  • All companies deriving significant revenue from:

    • Tobacco
    • Defence
    • Gambling
    • Coal extraction

Positive allocation themes

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  • The Fund structurally allocates to positive impact instruments and issuers including those deriving material revenue from sustainable sources.

  • The Fund also seeks to tilt the portfolio in favour of companies with better ESG scores, and aims to have a carbon intensity significantly lower than the benchmark.

Meet the team

Insight embeds ESG risk analysis across its investment processes: every portfolio manager and analyst is expected to take ESG factors into account where they are material and relevant to the investments they oversee.

$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

Sawbridge
Robert Sawbridge, CFA
Head of Responsible Investment Solutions
Lutz-engberding
Lutz Engberding
Portfolio Manager

$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

Benchmark: The Fund will measure its performance against the Bloomberg Barclays Euro Aggregate Corporate Total Return Index (the “Benchmark”).

The Fund is actively managed, which means the Investment Manager has discretion to invest outside the Benchmark subject to the investment objective and policy. However, as the Benchmark covers a significant proportion of the investable universe, the majority of the Fund’s holdings will be constituents of the Benchmark and the weightings in the portfolio may be similar to those of the Benchmark. The investment strategy will restrict the extent to which the portfolio holdings may deviate from the Benchmark and consequently the extent to which the Fund can outperform the Benchmark.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute

The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.

Risks associated with this Fund:
Objective/Performance Risk: There is no guarantee that the Fund will achieve its objectives.

Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Fund can lose significantly more than the amount it has invested in derivatives.

Changes in Interest Rates & Inflation Risk: Investments in bonds/ money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund.

Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk
of default. These investments may negatively affect the value of the Fund.

Credit Risk: The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.

Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.

New Fund Liquidity Risk: This Fund is not expected to hold investments which would be considered illiquid, however, while the Fund is being established, it is possible that the liquidity profile of the Fund may fluctuate.

CoCo’s Risk: Contingent Convertible Securities (CoCo’s) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.

Environmental, Social and Governance (ESG) Investment Approach Risk: This Fund can be considered to follow an ESG investment approach or incorporate elements of an ESG investment approach, which may cause it to perform differently than other funds that have a similar objective but which do not integrate an ESG investment approach (or elements thereof) when selecting securities. In addition, in following an ESG investment approach, the Fund is dependent upon information and data from third parties (which may include providers for research reports, screenings, ratings and/or analysis such as index providers and consultants). Such information or data may be incomplete, inaccurate or inconsistent.

Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Fund to financial loss.

A complete description of risk factors is set out in the Prospectus in the section entitled “Risk Factors”.

Important information

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Managers Limited (BNYMFM), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.

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$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide