Macro credit relative value
Beta management
Sector strategy
Security selection
Credit asset allocation
• Cross currency, developed vs emerging markets, investment grade vs high yield, corporate vs secured, physical vs synthetic
• Quantitative and qualitative
• Units of risk
Credit strategy process
• Directional credit risk • Credit cycle, valuation and tactical • Units of risk
Credit industry sector process
• Identify independent business and value cycles
• Fundamentals and relative value
Global analyst model
• Identify opportunities across regions, ratings and balance sheets • Proprietary cashflow models and internal ratings • Landmine checklist
Security selection
Sector strategy
Beta management
The Fund aims to achieve a carbon intensity level of its corporate debt investments that is at least 30% lower than the carbon intensity level of the Bloomberg Global Aggregate Corporate Index (or equivalent) as at the end of 2020 (the baseline level); and for this to fall to at least 40% lower than that baseline by the end of 2030.
The Fund will invest at least 60% of its allocation to corporate debt in issuers that are deemed to be at least committed to achieving net zero by the end of 2030.
We will aim to increase this allocation year on year to at least 85% by the end of 2050.
The Fund seeks to allocate to ‘positive impact’ bonds, such as green bonds, and bonds issued by companies that generate a material amount of revenue linked to UN Sustainable Development Goals or where a material amount of economic activities are defined as “environmentally sustainable” by the EU taxonomy regulation, in each case, as determined by the investment manager.
The Fund seeks to exclude (a) issuers which, at the time of investment and which in our view, have material involvement in sectors such as tobacco production, gambling, weaponry, coal mining and coal power generation; and (b) the poorest-performing companies with regard to ESG and climate risks (as determined by us based on, for instance, our own proprietary ESG ratings).
Macro credit relative value