- Enhanced client reporting for Breckinridge's sustainable municipal bond portfolios is intended to improve transparency and clarity about holdings with regard to certain material environmental, social and governance (ESG) factors.
- The new reporting compares holdings at the portfolio or composite level with the ESG characteristics of bonds in a relevant benchmark index.
- The enhanced client reports are specific to each investor’s portfolios.
Breckinridge has enhanced client reporting for sustainable municipal bond portfolios. The new reports should improve transparency and clarity about holdings for investors with regard to certain material environmental, social and governance (ESG) factors.
Beginning with second quarter 2022 reports, investors in Breckinridge sustainable bond strategies will receive a report that compares holdings at the portfolio or composite level with the ESG characteristics of bonds in a relevant benchmark index for the strategy. The new report presents aggregate data about the intended use of proceeds for bonds in the portfolio or composite and offers a profile of the portfolio’s bonds compared to the benchmark.
With respect to use-of-proceeds information, the reports will have transparency into the types of projects and purposes funded with the bonds owned in client accounts. For example, holdings will be aggregated as “environmental/conservation” or “education/k-12.” The reports also details the number of green, social, or sustainable bonds, if any, that are held in the portfolio.
With respect to metrics, the data presented are typically drawn from Breckinridge’s ESG frameworks. None of the metrics, alone or in conjunction with the others, solely drives portfolio inclusion. Also, portfolios are not built with the purpose of outperforming a benchmark on any single ESG metric. However, we expect the metrics to provide greater transparency into holdings for clients. The comparisons shown look at a number of ESG characteristics, including climate risk, water and air quality, racial integration, among others, that contain information about the specific bonds financing ongoing operations and projects within municipalities.
The new client reports are specific to each investor’s portfolios. A report that covers the Intermediate Sustainable Tax-Efficient Composite—aggregations of one or more portfolios managed according to a similar investment mandate—is also available.
DISCLAIMER: The opinions and views expressed are those of Breckinridge Capital Advisors, Inc. They are current as of the date(s) indicated but are subject to change without notice. Any estimates, targets, and projections are based on Breckinridge research, analysis and assumptions. No assurances can be made that any such estimate, target or projection will be accurate; actual results may differ substantially.
Nothing contained herein should be construed or relied upon as financial, legal or tax advice. All investments involve risks, including the loss of principal. Investors should consult with their financial professional before making any investment decisions.
While Breckinridge believes the assessment of ESG criteria can improve overall credit risk analysis, there is no guarantee that integrating ESG analysis will provide improved risk-adjusted returns over any specific time period.
Some information has been taken directly from unaffiliated third-party sources. Breckinridge believes such information is reliable but does not guarantee its accuracy or completeness.