CH-DE Institutionell

Making fixed income work harder

Putting sustainable euro bonds to work in institutional investment portfolios
February 2021

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Risk Disclaimer

The value of investments and any income derived from them can go down as well as up and investors may not get back the original amount invested. Changes in interest rates can reduce the value of your investment. Screening out sectors or companies may result in less diversification and hence more volatility in investment values.

The information provided in the marketing material does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell or otherwise transact in the Funds.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Despite the myriad challenges 2020 has presented, interest in sustainable bonds is undimmed. If anything, the desire to ‘build back better’ after the pandemic has refocused investors’ attention on the crucial role these instruments will play in securing a sustainable future. Demand for the average green bond issue is generally three times higher than supply, evidencing a strong appetite for green bonds in the investment community1. Meanwhile, the Climate Bonds Initiative estimates that issuance of green bonds will exceed $350bn in 2020, up from $265bn in 2019. There’s a clear trend of investors seeking to balance returns with making a positive impact.
In this paper, we discuss the opportunities for investors in sustainable bonds and show how an allocation to these instruments sits within a wider fixed-income allocation. We also explore how investors can avoid greenwashing, using case studies to highlight how our team of professional investors upholds rigorous standards for our clients.

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up and investors may not get back the original amount invested. Changes in interest rates can reduce the value of your investment. Screening out sectors or companies may result in less diversification and hence more volatility in investment values.

The information provided in the marketing material does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell or otherwise transact in the Funds.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

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