By Vishal Khanduja, CFA Investment Grade Fixed Income Portfolio Manager Brian Ellis, CFA Investment Grade Fixed Income Portfolio Manager Andrew Goodale Investment Grade Fixed Income Institutional Portfolio Manager
For fixed-income investors, understanding environmental, social and governance (ESG) factors – as they are financially material to performance – has proven to be necessary for assessing an issuer’s fundamental quality.
Integrating these factors into traditional fundamental research with active engagement can enhance long-term investment performance and create positive impact.
In active, multisector, fixed-income strategies, a comprehensive approach that includes complete sectorbased research coverage by specialized teams is critical to success.
Calvert encourages and participates in issues with direct impact, such as green bonds, which fund projects in areas such as climate-change mitigation, adaptation and resilience.
The goal of having broad, positive ESG impact is a result of our fully integrated investment process. A range of impact reporting metrics is being developed by Calvert for areas such as clean tech and human rights, which we believe will ultimately be used alongside traditional evaluation measures.
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