ESG at the Fixed Income Boutique

The world is facing powerful trends involving major economic, environmental and social changes. These trends result in risks and opportunities for investors. As bond investors, it is our belief that considering environmental, social and governance (ESG) factors, alongside financial data and credit metrics, mitigates potential negative rating actions and leads to better investment decisions.

Through the incorporation of ESG factors into our investment processes, we aim at improving the long-term risk-return characteristics of our portfolios while reflecting our clients’ values. Therefore, we do not separate ESG analysis from fundamental analysis, whereby all our portfolio managers and credit analysts have access to state-of-the-art ESG databases. Our dedicated ESG analysts, who sit within the Fixed Income Boutique, are on hand to advise our credit analysts and portfolio managers in any specific ESG issues that may arise.

ESG considerations are integrated at the asset class level and hence for all our products. However, we go beyond ESG integration. In the Fixed Income Boutique, we manage several sustainable funds across various fixed income asset classes, as well as an impact fund.

The Fixed Income boutique ESG integration strategy is coordinated by the Fixed Income Sustainability Board in order to have consistency between the approaches of our specialist teams. Our Fixed Income Sustainability Board is composed of sustainability specialists for all asset classes in our universe and chaired by Anna Holzgang.

The Fixed Income Boutique adheres to the Sustainable Investing and Advisory Policy of Vontobel Group. More information about the group-wide policy, including how Principle Adverse Impacts (PAIs) and sustainability risks are considered in investment decision-making, can be found at vontobel.com/sfdr .