We believe the market frequently ignores, and thus under prices, long-term risks that may be material to municipalities and corporations. It's most likely due to the fact that today's market suffers from a fixation on the short-term, and consequently seems less inclined to sufficiently account for significant challenges that lie ahead. We believe it's also due to the fact that most investors still don't consider the relevance of extra-financial factors, such as environmental, social and governance (ESG) factors. Breckinridge takes a very different view. We firmly believe that fully integrating the analysis of ESG factors into our research makes us smarter investors; that is, we can be better equipped to recognize under-priced risks and take a longer-term horizon for investing.
Breckinridge's integration of ESG research is entirely consistent with our investment philosophy. ESG is not simply a new strategy or product. Rather, it is fully integrated into our core investment process and it is a reflection of our commitment to rigorous, forward-looking research. Our highest priority at Breckinridge is to assure the security and safety of cash flows from principal and interest payments, and we believe ESG integration plays an important role in helping us carry out this mission.