TAKE AN ACTIVE APPROACH TO FIXED INCOMETAKEANACTIVEAPPROACHTOFIXEDINCOME

Relative value opportunities continue to mount as policy confusion and other contributors to outlook uncertainty spark bouts of market turbulence. Against an otherwise bullish backdrop marked by elevated yields and favourable risk metrics, active, fundamentals-driven approaches position fixed income investors to capitalise on market dislocation and mitigate downside risk.

Entities that conduct themselves in a manner consistent with strong ESG standards demonstrate a commitment that bodes well for their business operations, whereas those with lower-end sustainability indicators invite risks that inject uncertainty into their credit outlooks. Given that each company’s ESG-relevant actions correspond with potential investment implications, ESG factors are integrated into fundamental analysis and the decision-making process through a proprietary ESG impact ratings framework.