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Government Credit Sustainable Strategies

Sustainable investing requires a more comprehensive and forward looking assessment of risk.

EXPLORE OUR INVESTMENT STRATEGIES
Tax-Efficient
Government Credit
Core Government Credit

Maturity Based

Sustainable

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 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 in corporate, municipal, supranational and government agency securities with above-average ESG profiles and/or bonds that fund essential environmental, social or economic development projects. Values-based customizations are also available.

Investment Objective

Maximize risk-adjusted return, preserve capital and emphasize ESG performance

Eligible Investments*

Corporate Bonds

Taxable Municipal Bonds

Government Agency Bonds

Supranational Bonds

MBS, CMBS & ABS Securities*

Strategy Information

Inception Date: July 2011

Strategy AUM: $1.1 Billion

Benchmark: BBG Barc Intermediate US Gov/Credit

Portfolio Characteristics

Average Maturity 4.27 Years

Average Duration 3.91 Years

Average Credit Rating AA

Average Yield to Worst 3.19%

Average Coupon 2.58%

Average Annual Turnover 15-30%

Rating Distribution

AAA 40.2%

AA 24.2%

A 24.7%

BBB 9.5%

Unrated 0.0%

Cash 1.4%

Top 5 Sustainability Sectors

General Federal 36.5%

Best in Class ESG Corporate** 36.0%

Education 7.9%

Environmental 7.2%

Best in Class Municipal 6.1%

*Eligible investments include bonds with above average ESG profiles and bonds that fund sustainable or essential public purpose projects. Allocations to MBS, CMBS and ABS securities may also be included at the direction of the client. 

**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 9/30/18. Sample portfolio characteristics provided above are intended to illustrate general information for our Intermediate Sustainable Government Credit Strategy and are subject to change given market conditions and client objectives. Actual portfolios may vary.