Core Government Credit Sustainable
Sustainable investing requires a more comprehensive and forward looking assessment of risk.
It is supported by research that goes beyond financial statements to analyze material environmental, social and governance (ESG) factors that can impact present and future performance. At Breckinridge, we believe sustainability is a natural match for investment grade fixed income strategies. We have developed formal frameworks for analyzing issuer sustainability using rigorous processes, a seasoned investment team and proprietary technology.
Breckinridge’s core sustainable government credit strategies are designed for investors seeking to maximize risk-adjusted return and preserve capital while emphasizing environmental, social and governance (ESG) performance. Guided by proprietary ESG research, the strategy selectively invests across Treasury, government-related, corporate and securitized sectors with above-average ESG profiles and/or bonds that fund essential environmental, social or economic development projects. Values-based customizations are also available.
Maximize risk-adjusted return, preserve capital and emphasize ESG performance
Inception Date: September 2017
Strategy AUM: $199 million
Typical Benchmark: BBG Barc Intermediate US Gov/Credit
Average Maturity 5.21 Years
Average Duration 3.89 Years
Average Credit Rating AA
Average Yield to Maturity 3.08%
Average Coupon 2.76%
Average Annual Turnover 20-40%
Top 5 Sustainability Sectors
Best in Class Corporate** 35.6%
General Federal 22.4%
Economic Development 16.8%
*Methodology uses lowest of S&P and Moody’s, but Prerefunded and Treasury bonds default to AAA category.
**The CFA Institute defines best-in-class selection as preferring issuers with better or improving ESG performance relative to sector peers.
The information above is current as of 12/31/18. Characteristics provided are representative of fully invested portfolios managed to this strategy and are intended to illustrate general strategy information. These characteristics are subject to change given market conditions and client objectives. Actual portfolios may vary.