Government Credit Sustainable Strategies
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 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 Treasury, government-related and corporate issuers with above average and/or improving ESG profiles. Values-based customizations are also available.
Maximize risk-adjusted return, preserve capital and emphasize ESG performance
Inception Date: July 2011
Strategy AUM: $1.3 Billion
Benchmark: BBG Barc Intermediate US Gov/Credit
Average Effective Maturity 4.22 Years
Average Duration 3.86 Years
Average Credit Rating AA+/AA
Average Yield to Maturity 2.17%
Average Coupon 2.65%
Average Annual Turnover 15-30%
Top 5 Sustainability Sectors***
General Federal 39.5%
Best in Class Corporate 37.1%
Best in Class Municipal 5.4%
*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.
**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 6/30/19. 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.