Virtus Launches Sustainable Emerging Markets Debt Fund to Tap into Growing Demand for ESG Investments

Virtus Investment Partners has launched the Stone Harbor Emerging Markets Climate Impact Debt Fund, classified as Article 9 under SFDR, focusing on decarbonization in emerging markets. The fund invests in sustainable debt from various issuers and aims to outperform the J.P Morgan EM Credit Green, Social and Sustainability Bond Diversified Index. The fund is available for European investors and carries risks including currency and credit risks, as well as limited accessibility to US investors.

Virtus Investment Partners has introduced the Stone Harbor Emerging Markets Climate Impact Debt Fund, a UCITS fund classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR). This fund targets decarbonization efforts in emerging markets (EM) while seeking to deliver attractive long-term total returns for investors. The fund invests in sustainable debt issued with proceeds dedicated to environmental activities, assets, projects, or expenditures, with social bonds also permissible, from EM corporate, sovereign, quasi-sovereign, and supranational issuers in hard currency [1].

The Stone Harbor Emerging Markets Climate Impact Debt Fund aims to outperform the J.P. Morgan EM Credit Green, Social and Sustainability Bond Diversified Index (GESSIE EM Credit Div USD Hedged). The fund's investments are identified through the Stone Harbor SFDR sustainable investments framework and complement the firm's Article 8 UCITS fund, the Stone Harbor Emerging Markets Corporate Debt Fund [1].

James E. Craige, CFA, Stone Harbor’s chief investment officer and head of Emerging Markets, oversees the management of the fund. The investment team includes Deputy Chief Investment Officer Stuart Slater-Booth and Portfolio Managers Steffen Reichold, Richard Lange, and Darin Batchman. Reichold noted that the market for emerging markets green and sustainable bonds has been developing rapidly, offering broad diversification in liquid markets [1].

The fund is available for European investors and carries risks including currency and credit risks, as well as limited accessibility to US investors. The fund's prospectus and key information documents are available online at globalfunds.virtus.com or upon request via email by contacting legal@shipemd.com [1].

References:
[1] https://finance.yahoo.com/news/stone-harbor-investment-partners-introduces-200500718.html