Our main objective for integrating ESG analysis is to enhance returns and protect value for our clients.
Credit: ESG issues can have a material influence on the sustainability of issuer cash-flows and therefore the risk to bondholders. We seek to identify and analyse multiple ‘real-world’ themes in a holistic, forward-looking way, and to understand corporate business models to identify how issuers are managing change.
Sovereigns: Given rapid social and environmental change, it is vital to assess countries' abilities to adapt and thrive as these forces re-shape industries, governments, growth and inflation prospects. We believe ESG integration helps with capital preservation and generating alpha through better country allocation.
Munis: ESG risks are analysed as part of overall security selection, and views incorporated into grades and recommendations.
Securitised: We believe an in-depth understanding of collateral cash flow and structure is the foundation of generating returns in a market where size and complexity leads to exploitable inefficiency. The consideration of ESG factors complements the assessment of the quality of the collateral and the sustainability of the cash flows.
We’re committed to avoiding any companies deriving revenue from cluster munitions or anti-personnel mines. We also manage screened mandates based on client-specific criteria.