Jupiter’s thematic environmental fixed income strategy is managed with a collaborative approach, bringing together the expertise of Jupiter’s environment and sustainability equities and fixed income and multi-asset teams. We analyse how an entity’s business risk profile and earnings are likely to evolve over time and consider the impact on the various stakeholders involved. Careful consideration of a company’s entire capital structure and the relative value of those securities is central to the process in order to determine where the best risk-adjusted returns can be found between its bonds and equity. This approach helps us to determine the right balance of securities to help mitigate downside risk for our investors while providing our clients with exposure to long-term environmental and sustainable solutions themes.
We continue to strengthen our Green Bond and Sustainability Bond Criteria. Last year we explicitly incorporated a “Do No Harm” component to the credit review process for labelled bonds whereby the full operations of the organisation (not just the labelled projects) are reviewed for potentially harmful activities. In addition, we expect our criteria to develop in line with those speicified under the EU Taxonomy in 2020.