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Breckinridge Capital Advisors

PRI reporting framework 2017

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 04. Incorporation strategies applied

04.1. Indicate 1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and 2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.

SSA
0 Screening alone
0 Thematic alone
100 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
100 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
100 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

04.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

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. 

04.3. Additional information [Optional].

Since 2011, we have fully integrated ESG criteria into our core investment process and have developed proprietary frameworks to generate sustainability ratings that inform our internal credit ratings for issuers. We believe that this type of analysis provides a long-term, forward-looking perspective that can help identify and price credit risk. Ultimately, we strongly believe that integrating ESG analyses with traditional financial analyses can lead to improved long-term risk-adjusted returns.

We also offer clients the opportunity to select high-quality sustainable fixed income strategies that emphasize ESG criteria. These strategies identify and selectively invest in issuers with above average ESG profiles and bonds that fund essential environmental, social or economic development projects. In addition, as a customized separate account manager, we have the ability to implement negative screens through security-level or sector-based restrictions, or positive and/or thematic screens as it relates to an area of interest to the investor. We also offer a range of values-based mandates ranging from fossil fuel free to gender lens mandates for investors.


FI 05. ESG issues and issuer research (Private)


FI 06. Processes to ensure analysis is robust

06.1. Indicate how you ensure that your ESG research process is robust:

specify description

          We cross reference our insights on material ESG factors in direct discussions with issuers as part of our engagement process.
        

06.2. Describe how your ESG information or analysis is shared among your investment team.

06.3. Additional information. [Optional]


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