ESG & Sustainable Investing

Elena Rinaldi discusses why ABS should be seriously considered by investors looking to invest on an ESG or sustainable basis.

Partner and Portfolio Manager Chris Bowie discusses whether a particular low volatility credit fund could have been managed on a sustainable basis, while still meeting its objectives

Gordon Shannon, Portfolio Manager, discusses momentum in ESG investing.

Jack Daley and Charlene Malik discuss how we actively engage with companies on behalf of our clients to help transition to a more ESG responsible world.

Johnathan Owen discusses the growth of green bonds over the last few years.

Sophia Papi discusses TwentyFour's CSR approach.

As with many things ESG related, interest in, and issuance of, green bonds is growing rapidly.

Graeme Anderson hosted abreakout session in the ESG tent where he discussed TwentyFour's ESG Integration model, how company behaviour affects our ESG scoring and how our Observatory relative value system has enabled us to build ESG analysis into the investment process the portfolio managers use every day.

At TwentyFour, ESG - Environmental, Social and Governance - factors, are a critical component in our investment process. This video explains our approach to ESG integration at TwentyFour.

Green bonds have seen dramatic growth both in terms of market size and media coverage in recent years. In 2019 we saw $237bn of issuance, a 62% increase on 2018’s $146bn, from a mixture of sovereigns, financials and corporates; and in its wake has come a proliferation of dedicated green bond funds.

Today BBVA announced it would be issuing the first ever green Additional Tier 1 (AT1) bond, a perpetual non-call 5.5-year with initial price thoughts at 6.5%, and immediately sparked a spirited debate among the TwentyFour team over how green bank capital can be.

As regular readers of this blog will know, TwentyFour has adopted ESG integration throughout its investment process for all strategies, and launched its first sustainable fund offering in January 2020. In doing so, we have engaged in some fascinating debates with clients and peers about the growing impact of ESG objectives on the fund management industry, and on fixed income markets in particular. Here are a few of our predictions for the years ahead.