Climate Transition Global Buy and Maintain Strategy
The strategy aims to capture climate transition opportunities across sectors, generating regular income to meet investors’ needs through a buy and maintain management style. While focusing on low turnover, capital preservation and limiting credit migration this strategy aims to decarbonize by 2050.
Competitive advantages
Yield-enhanced total return solutions
Consistent and competitive long-term performance, on both an absolute and risk-adjusted basis.
Benchmark-aware vs. Benchmark-centric
Absolute return orientation and flexibility to focus on less efficient sectors within the market.
Client partnership model
An extension of each client’s team—a tailored portfolio, not a “product.”
Optimal team structure
The team is functionally organized to extract value from the market.
Competitive income and risk controls
Well-underwritten income seeks to drive competitive total return and information ratios.
Focus on yield advantage and security selection
To deliver strong performance for clients, the teams maintain an intense focus on finding high-quality, well-underwritten bonds with a competitive income advantage.
Key risks
Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.
Debt securities risk: Debt securities are subject to both credit and interest rate risk. Credit risk is the possibility that the issuer or guarantor of a debt security may be unable, or perceived to be unable or unwilling, to pay interest or repay principal when they become due, and credit risk increases as an issuer’s credit quality or financial strength declines. Interest rate risk is the possibility that interest rates will change over time such that when interest rates rise, the value of debt securities tends to fall and the longer the terms of the debt securities held the greater the impact of this risk.
High yield risk: If a strategy invests in high yield securities (commonly known as junk bonds), these securities are considered speculative and have a much greater risk of default or of not returning principal and their values tend to be more volatile than higher-rated securities with similar maturities.
Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.
Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to Form ADV Part 2.