For institutional investors in Norway

The challenges of decarbonising a Buy & Maintain portfolio

James Briggs, ACA, CFA

James Briggs, ACA, CFA

Portfolio Manager


Anil Shenoy

Anil Shenoy

Head of UK Institutional


26 Apr 2021

Key takeaways:

Portfolio Manager, James Briggs and Head of UK Institutional, Anil Shenoy, share their thoughts on climate change risk management in Buy & Maintain portfolios while discussing the issues around data and the importance of performing forward looking fundamental ESG analysis on each bond within the portfolio.

Key takeaways

  • Buy & Maintain corporate bond portfolios are expected to form a core component of a defined benefit (DB) pension scheme’s overall investments, particularly as they mature and approach their endgame.
  • Climate change risks are particularly relevant for these long-term portfolios as their investment horizon may be 15-20 years out, over which time climate related risks are expected to materialise.
  • While there is no simple solution, an iterative discussion with the investment manager is necessary to understand any trade offs that need to be considered when implementing climate risk strategies in portfolios.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

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