We invest solely in domestic USD dollar denominated SSAs (government-related securities). For SSAs, ESG is integrated into our analysis of each project and program. However, we don't generate ESG scores for SSAs due to a lack of consistent and comparable data.
Local Authorities (Municipals): In the municipal sector, we integrate ESG via factor and theme in our analysis of revenue and general obligation bonds. We focus on four key factors across all our municipal investments: use of bond proceeds, infrastructure quality, pension/OPEB contributions and governance. For clients with ESG/SRI specific considerations, we may invest in municipal bonds whose use of proceeds align with a desired impact or theme. For example, a revenue bond issued by a school district may be an attractive investment for a client who seeks to promote education.
Agencies: In the agency sector, we integrate ESG via theme in our analysis of Federal Agency bonds. For clients with ESG/SRI specific considerations, we may invest in the bonds of a Federal Agency who supports a cause aligning with a desired impact or theme. For example, a bond issued by the Small Business Administration (SBA) may be an attractive investment for a client who seeks to promote local businesses.
Treasuries: We use U.S. Treasuries for duration and liquidity management. Political risk and economic effectiveness are key factors in our overall sovereign risk analysis.