We incorporate ESG factors by combining slower and nearer-term moving economic and financial market indicators as key inputs into our investment decision-making process. We access a range of off-the-shelf and tailored sources to build a picture of the critical themes we need to integrate into our models and thinking. When we combine these inputs with our judgement and experience, we are able to create portfolios which balance investment and ESG considerations.

Over time we believe that returns can be enhanced and risk can be mitigated through a deliberate (but not overriding) ESG approach. The following ESG pillars are integrated into the JCB investment process:

• We deal with high grade sovereign bonds (i.e. sovereigns, semi government, agencies, supranationals).
• We primarily apply (though not always) a variety of spread strategies (vs being outright long, for example) – we do not replicate the index.
• We recognise that a range of ESG issues have impacts.
• We liaise and promote with issuers, but we’re realistic in what we can impact.

As an active high grade bond manager, we continuously look to implement best practice approaches to ESG. Contact us for more information or for a copy of our ESG policy.