Sustainable fixed income has proliferated in recent years.
According to Morningstar data, there are now 476 sustainable bond funds registered in the UK; this compares with 126 in 2013 and just 31 in 2003.Â
Within this, the global social bond market has also expanded, with 10 funds now available to UK retail investors that have a specific basic human needs or development theme.
Bond instruments that are created specifically to fund an ESG aim, known as GSS+ (green, social and sustainability) bonds, should be distinguished from sustainable fixed income strategies.
The latter may or may not invest in GSS+ bonds, as they may (also) invest in bonds that conform to sustainable goals, but are not dedicated to sustainability.
But whether advised clients want specialist GSS portfolios or a sustainable strategy overlay on their investment portfolios, there are plenty of choices available.Â
The CPD report, written by financial journalist Imogen Tew, will enable you to list ways to create an ESG-friendly bond portfolio, summarise the advantages and the risks, and enable advisers to explain how to assess different fixed income investments.
Click on the image above to read the report.
simoney.kyriakou@ft.com
