Breckinridge Expands Its Capabilities to Support Net Zero Emissions and Values-Aligned Investing
Firm adds corporate and municipal bond investment options that focus on low carbon transition,
climate vulnerability and community needs
BOSTON, September 13, 2023 – Breckinridge Capital Advisors announced today expansion of its investment capabilities to include three new investment customizations that, based on client preferences, can focus on companies that are on the pathway towards net zero emissions, or municipal issuers that are addressing climate risks, essential services, and infrastructure, as shaped by community needs and income.
The new investment capabilities build on more than a decade of experience in analyzing and integrating climate and other material ESG risks when constructing and managing client portfolios. New customizations will be comprised of bonds selected from investment-grade issuers that are carefully evaluated by Breckinridge’s corporate and municipal credit research teams. Each capability has a differentiated investment approach in the following ways:
- The Net Zero Customization seeks to allocate capital to bonds issued by corporations pursuing plans to achieve net zero greenhouse gas (GHG) emissions from operations by 2050.
- The Tax-Efficient Climate Vulnerability Customization seeks to allocate capital to issuers that face heightened physical climate risk and that serve communities with older infrastructure or lower income residents.
- The Tax-Efficient Community Needs Customization seeks to direct capital to generally underserved areas for essential service infrastructure, such as water and sewer projects.
Breckinridge’s net zero approach works to manage transition risks for Investment Grade corporate bond portfolios across all sectors, including sectors with higher greenhouse gas emissions. “Our corporate climate transition risk framework is not a divestment approach, but rather a data-driven, quantitative analysis of the decarbonization progress companies are making on their pathways to net zero emissions,” said Peter Coffin, Founder and President of Breckinridge Capital Advisors. “Leveraging that data, as well as qualitative research and engagement with bond issuers, we can customize a portfolio that responds to growing interest in net zero investing.”
“Our two new values-aligned customizations seek to preserve capital and maximize after tax income while biasing the client’s investment allocation to local communities,” said Breckinridge Chief Investment Officer, Ognjen Sosa. The Climate Vulnerability customization is grounded in the observation that lack of resilience to physical climate risk is linked to a community’s resource capacity and the age of its infrastructure, while Community Needs customization is designed for clients who wish to direct capital to potentially underserved areas. Breckinridge brings 30 years of experience in providing the highest caliber of investment management, with a history of customizing portfolios for specific investor needs.
For more information on all of Breckinridge’s fixed income and equity dividend income strategies, visit https://www.breckinridge.com/investments/strategies/.
About Breckinridge Capital Advisors
Breckinridge Capital Advisors is a Boston-based asset management firm specializing in providing the highest caliber of investment management for a wide variety of investors 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. Breckinridge assets under management exceeded $44.5 billion as of June 30, 2023, including more than $9.2 billion in sustainable strategies. For more information, please visit https://www.breckinridge.com/.