Responsible Money  

Diversifying your sustainable fixed income exposure

  • To be able to explain the evolution of the sustainable fixed income market
  • To understand the challenges of diversification within the sustainable bond market
  • To be able to explain the different categories that fit within the broad sustainable fixed income universe
CPD
Approx.30min
Diversifying your sustainable bond exposure
How can one create a fixed income portfolio that is sustainable and diversified against both duration and credit risk
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While there is a greater understanding of the sustainable equity investment universe, the market for those keen to build a sustainable bond portfolio is more nebulous. 

This feature will examine how an adviser can build a portfolio that is exposed to each of the environmental, social and governance considerations, as well as the more asset-class-specific considerations around duration and credit risk.

This feature, which comes with 30 minutes of CPD, will examine the development of the sustainable fixed income market in recent years, and consider what the options are for advisers contemplating building up such an exposure. 

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david.thorpe@ft.com

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Morningstar data quoted in the article, how many registered sustainable bond funds are there in the market right now?

  2. What does Finch say is crucial to understanding whether a social bond is achieving its purpose?

  3. Which area of ESG does Neidhert say investors in the US prioritise?

  4. Which of the below is the figure for outflows from sustainable investment strategies in June 2023?

  5. Why does Keller say social impact bonds are becoming more popular?

  6. What proportion of all bond issuance in 2022 was ESG bonds?

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You have successfully answered all the questions correctly, well done!

You should now know…

  • To be able to explain the evolution of the sustainable fixed income market
  • To understand the challenges of diversification within the sustainable bond market
  • To be able to explain the different categories that fit within the broad sustainable fixed income universe

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