Sustainable Fixed Income

Sustainable Fixed Income Overview
Objective Generate competitive returns over the long term by investing in fixed income securities with a favorable sustainability profile
Benchmark Bloomberg Barclays US Aggregate Index
Investment Style
  • Pursue sustainable financial returns alongside positive social and environmental impact
  • Seek to optimize risk/reward profile by combining sustainable and economic factors
  • Invest in a range of fixed income securities and issuers with a favorable sustainability profile
  • Research-intensive process incorporates proprietary methodology to determine sustainability and economic potential
  • Engage with issuers to enhance sustainability
Universe Primarily focused on US investment grade corporate bonds, US and foreign government securities as well as mortgage-backed and asset-backed securities. May opportunistically invest in municipal bonds, high yield bonds and emerging market debt.
Inception Date April 1, 2019
Vehicles & Minimums Separate account minimum: $50 million

Sustainable Investment Opportunities

Opportunities to align fixed income portfolios with sustainability initiatives exist across many sectors

Sustainability Pillar Investable Areas Sector examples

Climate Change

-"Green" buildings
-Recycling and composting services
-Environmental
-SASB CMBS
-REITS
-Green bonds

Eco Solutions

-Renewable energy
-Hybrid/electric vehicles
-Cloud-based computing
-Technology
-Automotive
-Solar ABS

Resource Efficiency

-Use of recycled inputs
-Sustainable agriculture
-Water services
-Agriculture
-Paper/ packaging

Health & Well-being

-Nutritious, sufficient food
-Personal hygiene
-Medicines and vaccines
-Educational services
-Consumer products
-Pharmaceuticals
-Student loan ABS

Sustainable Growth

-Affordable housing 
-Mass transit
-Stable, effective sovereign governments
-Agency MBS
-Sovereigns
-Transportation

Experienced portfolio management team

 

Brad Doyle

Jeremy Mead

   

Jose Pluto

 

Jeremy Thurm

Distinguishing characteristics

Differentiated research framework Proprietary sustainability process Experienced team, consistent process
  • Dedicated sector-focused credit research team covers issuers across the quality spectrum
  • Specialized emerging markets and structured research teams expand research coverage
  • ESG integration can help identify opportunities and risks
  • Research-driven approach with centralized committee-based decision making
  • Customized sustainability determination process for corporates, structured and sovereign
  • Global Responsible Investment team engages issuers to help further enhance sustainability
  • Seasoned portfolio management team has 22 years of industry experience
  • Extensive experience managing core and core plus strategies
  • Adhere to a disciplined, transparent and repeatable process

Positioning/Characteristics 

The benchmark is the Bloomberg Barclays US Aggregate Index. Percentages based on market value as of 9/30/2019. Numbers may not add due to rounding. The portfolio information above reflects a representative account. Credit ratings reflect the Bloomberg Barclays credit quality methodology. Average quality excludes cash and securities that are not rated. The credit quality of a security or group of securities does not ensure the stability or safety of the overall portfolio. 

1 The Sustainability Pillar Allocation reflects holdings excluding cash and cash equivalents, based on the United Nations' Sustainable Development Goals as well as Aegon AM US' impact categories and sustainability pillars. All information is provided for informational purposes only.

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