The fund will invest in bonds selected from a universe created by removing companies with a negative impact (e.g. armaments, tobacco, gambling) and favouring companies impacting society and the environment positively (e.g. social change, renewable energy, education). Selected bonds will be further researched from a financial perspective, supported by the in-house analyst team and looking at the underlying company’s balance sheet and the direction of management.
We like the fund owing to their willingness to select companies having a positive impact in a relatively constrained universe whilst also screening out the most controversial sectors. It also has a strong investment process which allow the team to invest flexibly through the corporate credit universe, including the ability to invest in government bonds when attractive, as well as manage their exposure to various risks, for example to rising interest rates.