Breckinridge Capital Advisors Integrates Portfolio-Level Physical Climate Risk Analysis Across Sustainable Municipal Strategies
One year of implementation gives portfolio managers a clearer view of hurricane, flood and wildfire concentrations relative to relevant benchmarks
BOSTON--(September 24, 2026)--Breckinridge Capital Advisors, an independently owned asset manager working to provide the highest caliber of investment management, has surpassed one year of applying an enhanced physical climate risk assessment to its sustainable tax-efficient municipal strategies. The proprietary assessment aggregates hurricane, flood and wildfire exposure at the portfolio level, complementing Breckinridge’s longstanding issuer-level sustainability analyses and security-level use-of-proceeds assessments.
Breckinridge’s approach starts at the security level and rolls-up to an aggregate portfolio-level climate score. The combined security- and portfolio-level assessment empowers portfolio managers to identify climate-related exposures that may be elevated and to align overall portfolio risk with client-driven investment needs. The portfolio’s aggregate exposure can be compared to relevant state and national benchmarks.
The capability comes against the backdrop of more frequent and damaging extreme-weather events, changing insurance dynamics and evolving disaster-recovery considerations. Breckinridge believes these trends are likely to increase the relevance of physical climate risk assessments for municipal investors. Physical climate risk is infrequently reflected in municipal bond valuations but may influence pricing more often, over time.
Over the past year, Breckinridge has used the capability to more closely monitor portfolio-level exposure to physical climate risk and to incorporate those insights into investment decisions.
“A portfolio-level view of climate allows us to identify risk concentrations that may not be apparent when evaluating issuers, individually,” said Erika Smull, PhD, Senior Research Analyst at Breckinridge Capital Advisors. “By comparing climate exposures against relevant benchmarks, we believe we can mitigate unpriced climate risk, incrementally. We incorporate that information alongside traditional credit and sustainability analysis when evaluating securities and portfolio construction.”
Breckinridge has incorporated physical climate risk assessments into its sustainable bond investment strategies for more than a decade. The enhanced approach builds on that experience by adding a top-down risk perspective to the firm’s issuer-level approach.
“Investors inherently assume ‘localized risk’ when participating in the municipal bond market. Municipal issuers cannot relocate the large, costly, public assets that they often finance with debt. Climate change, therefore, likely presents municipal investors with more risk, at least in some circumstances.” said Ognjen Sosa, CEO of Breckinridge Capital Advisors. “We believe our ability to combine security-level climate assessments with a broader view of risk across portfolios powers deeper insights and enables better customization options for clients.”
For more information on Breckinridge’s approach to monitoring aggregate exposure to physical climate risk, visit https: //www.breckinridge.com/insights/monitoring-aggregate-exposure-to-physical-climate-risks.
About Breckinridge Capital Advisors
Breckinridge Capital Advisors is a Boston-based, independently owned asset manager working to provide the highest caliber of investment management. With $55 billion in assets under management as of June 30, 2026, Breckinridge serves a wide variety of clients ranging from private clients to institutions. Working through a network of investment consultants and advisors, Breckinridge offers fixed income, dividend income and sustainable investing strategies in customized separate accounts. For more information, please visit https://www.breckinridge.com/.
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