The approximate 14% of assets under management that constitute SSA bonds are primarily U.S. Agency notes and municipal bonds. Because we purchase investment grade securities, thematic and screening approaches are the focus of fixed income incorporation strategies.
Thematic: At the national level, Boston Trust Walden focuses on notes of U.S. government sponsored enterprises, most commonly Federal National Mortgage Association and Federal Home Loan Bank securities that support the financing of housing and community lending. We also hold Federal Farm Credit Bank securities, a leading financer of agriculture and rural communities. Municipal securities support infrastructure development, housing, education, healthcare, as well as projects with environmental benefits. For example, MA Commonwealth Green bonds held in many client portfolios fund stormwater projects, energy efficiency and conservation in Massachusetts buildings, open space protection and environmental remediation, and river revitalization and habitat restoration projects. In a few instances, green bonds have also been purchased from supranational organizations (e.g. World Bank) and other sovereign states.
SSA screening: As appropriate, we apply screens to achieve any unique environmental and social objectives of our clients. For example, some clients rule out investment in general obligations of the U.S. Treasury or securities that fund specific projects such as prisons.