ESG at TwentyFour
At TwentyFour Asset Management we believe Environmental, Social and Governance (ESG) factors can have an influence on the value of our investments.
Sustainable
We believe investors can promote better societal outcomes without compromising on returns.
Our proprietary relative value software, Observatory, enables us to offer ESG screening specifically designed for investors who wish to focus on sustainability and promoting better social outcomes, while still benefiting from TwentyFour’s specialist, active approach to fixed income.
Our sustainable strategy is a simple way for investors to help ensure their capital is being invested sustainably and responsibly, while still benefiting from TwentyFour’s specialist and active approach to fixed income.
Our offering
What is Sustainable Investing?
ESG issues can be a risk to fixed income returns like any other. At TwentyFour we have built the assessment of these risks into our regular investment process, with an integrated ESG model used daily by portfolio managers for all strategies across the firm.
However, in recent years many investors have begun to consider sustainability a key element of their own investment objectives, and have sought products that specifically avoid investing in companies perceived to operate in an unsustainable way, either for their own business or the society and environment in which they operate.
Unfortunately, especially within fixed income where ESG data availability can be poor compared to publically quoted equities, managers have developed a range of approaches to sustainable investing, and it is clear to us that many of these may not work for investors in the way they should.
Why invest?
- Promoting better outcomes: We believe the aim of sustainable investing should be to at least maintain investor returns while playing a part in promoting better environmental, social and governance outcomes
- ESG and performance: Our research has shown that with the right combination of positive and negative screening, stated sustainability criteria do not have to detract from risk-adjusted returns
- Higher return potential: A focus on more nuanced factors such as controversies, engagement and momentum in ESG analysis can potentially deliver higher returns and improved ESG outcomes
- ESG Framework: TwentyFour’s ESG integration framework puts the onus on the team’s ongoing credit work, rather than relying solely on third party analysts or data providers
- Regulation: Regulatory initiatives are increasingly pushing asset owners into more sustainable strategies, and we expect companies seen as running sustainable businesses to benefit from increased capital flows in the coming years
Meet the team
Insights
TwentyFour
The End of the Road for Petrolheads
We can model all kinds of credit risk as long as there is enough protection in the structure for investors to get comfortable with a degree of residual value risk.
TwentyFour
ESG Quarterly Update – July 2021
TwentyFour Partner and Chairman Graeme Anderson discusses the firm’s ESG developments during Q2 2021 and presents its plan for the coming months.
TwentyFour
ESG is Inflationary
As companies and individuals adopt sustainable practices, we believe the potential exists for inflationary consequences.
Fixed Income Boutique
Second time lucky?
It is hard to draw any immediate conclusion from this transaction other than Repsol's notable persistence to obtain sustainable financing.
TwentyFour
The new mortgage prisoners – the unintended consequences of improving the world
In both instances, the good intentions of the regulator and the authorities are clear… But at the same time both changes have the potential to cause an increasingly undesired side effect.
TwentyFour
A Lighter Shade of Green
We have a high opinion of Kensington as a mortgage lender and when we score it for ESG as part of our investment analysis it performs very well even without this latest Green initiative, but we do feel it can stretch further.