The U.S. Impact Bond strategy is a high quality fixed income strategy that seeks to deliver competitive market returns while maximizing positive social and environmental impact. Our U.S. Fixed Income team is deeply rooted in impact investing, and has a unique lens and depth of understanding of social and environmental issues. Impact measurement is a key focus of this strategy. The granularity and rigor of our proprietary approach to measuring the social and environmental impact of our portfolios allows for robust reporting. In turn, this helps us show how the investments align with the United Nations Sustainable Development Goals (SDGs). The SDGs are a powerful global agenda that sets forth quantifiable targets which aim to end poverty, protect the planet and ensure prosperity for all by the year 2030.
Strategy overview
We believe in active management that seeks to deliver consistent excess return, and that income drives returns in fixed income over the long term. The U.S. Impact Bond strategy enables clients to align their assets with their values while also pursuing competitive returns within a high quality fixed income investment. The strategy is focused on creating measurable positive impacts across several themes:
- Climate change solutions
- Affordable quality shelter
- Good health and well-being
- Education
- Reduced inequalities
- Decent work and economic growth
- Community development
Our approach
Investment strategy
The investment strategy seeks to generate market rate performance along with measurable positive impact. Prudent underwriting and diligent risk management are crucial to building resilient portfolios. Top down risks, such as duration, are not intended to be drivers of excess returns over the long term and these risks are tightly controlled. The team looks to generate alpha through current income which is achieved through security selection. Portfolio construction for our impact strategies is consistent with the philosophy of all of our U.S. fixed income investment strategies, with an added lens to determine alignment with our impact goals or the specific impact goals of our clients. We work with strategic partners to build customized securities that help achieve those goals.
- Investment universe: Corporate, Taxable or Tax-exempt Municipals, Agency CMBS, Agency MBS, Government Related