Our ESG-screened approach to global high yield corporate bonds offers diversified exposure to global sub-investment grade credit in US dollars, sterling, euro and other major global currencies, while aiming to deliver a portfolio with a higher ESG rating than that of the overall market.
We select high yield investments based on in-depth analysis of individual bond issuers and how they are impacted by global, regional, and country-specific macroeconomic factors. We combine this with in-depth research and monitoring of issuers’ creditworthiness and ESG standards.
The strategy has an international focus and the flexibility to invest wherever we see most attractive value. ESG considerations are fully integrated into the investment process and have a direct impact on portfolio construction.
We apply a three-stage screening process designed to exclude companies which display poor ESG credentials and those operating in certain sectors, subject to internal thresholds.
In addition, companies deemed to be in breach of the United Nations Global Compact principles and/or involved in defence and weapons are excluded, while other industries, including tobacco, alcohol, adult entertainment, thermal coal, gaming and nuclear energy, are restricted.