We have five fixed income and credit teams:
- Global Unconstrained Fixed Income (USA based)
- Asian Fixed Income
- Emerging market Debt
- Australian Fixed Income & Global Credit.
- Short term investments (cash)
In addition we have recently added a high yield team who were not managing client funds at the end of the reporting period.
Like our equity teams our fixed income teams have developed their own approaches to ESG integration which complements their investment processes. The Asian and USA FI&C teams share significant elements of their investment process with the Global credit team, including analyst resources. The US team joined the firm in 2014.
We believe that ESG issues have a direct impact upon a company's risk and therefore its probability of default. As risk turns into a liability for company, it impacts cash flow and therefore both its debt cost and credit ratings.
ESG issues can impact on a sovereign's ability to generate sustainable revenues or potentially increase its future costs, affecting its ability to repay bond holders.
We screen out cluster munition and land mine manufacturers in accordance with our cluster munitions policy. We also screen sanctioned and some high risk (of sanction) countries, businesses and people.