Finding sustainable income in a low-yield environment
In today’s environment of persistently low interest rates, finding income is a challenge for many people – and more so for those seeking to achieve their financial goals sustainably. Global Income Sustainable Fund provides an alternative to bank savings, seeking income from sustainable sources across asset classes.
Building a sustainable portfolio
Asset classes from equities to high yield bonds have the potential to provide income, but present different environmental, social and governance (ESG) challenges and opportunities. We use a three-pillar approach underpinned by in-house research to build a sustainable portfolio.
ESG factors are incorporated in our research and decision-making processes across asset classes.
We exclude companies from 10 unsustainable sectors and activities.
The portfolio is tilted towards the sustainable leaders in each asset class.
Securitised assets: Financing affordable housing
Low yields not only present a challenge for income investors but also inflate asset prices, increasing inequality. One notable example is in the housing market, where low interest rates have inflated house prices around the world.
We believe affordable housing is an important requirement for a balanced society. Through our securitised allocation, we are able to finance affordable multi-family properties. Our investment helps affordable housing developers construct, rehabilitate, refinance and acquire affordable multi-family housing. The issuer is committed to the communities they serve, with transactions for non-profit and for-profit affordable housing developers. All this is designed to improve neighborhoods, create jobs, or improve the health care services or educational opportunities available to the communities the issuer serves.
Conducting ESG analysis within the securitised sector is imperative as ESG factors not only have the ability to impact risk-adjusted returns but also present opportunities for impact. However, the sector presents unique challenges and coverage from third-party ESG data providers is limited. We have developed our own ESG materiality framework which enables us to assess the securitised market through an ESG lens and source sustainable investment opportunities.