While investing in public purpose bonds has always been a core investment theme at Breckinridge, these strategies offer taxable and tax exempt investors the opportunity to select high-grade fixed income strategies that focus on sustainability. They provide a targeted and positive social impact by identifying and investing in bonds that strengthen our education system, expand public transportation, produce clean energy, conserve water resources, improve healthcare, build affordable housing and support socially responsible companies.
Tax-Free Sustainable Municipal Portfolio
Investment Objective:
Maximize risk-adjusted total return while meeting specific sustainable objectives of institutional and individual investors seeking to invest with high social impact.
Portfolio Characteristics*:
Average effective maturity: 5-7 yrs
Average duration: 4-4.75 yrs
Average credit rating: AA
Average annual turnover: 25%
Purpose Allocations Include:
Education
Environmental utilities
Healthcare
Transportation & Infrastructure
Investment Philosophy
While a bond issue’s eligibility for sustainable investing is an overriding criterion in its selection, we simultaneously adhere to our fundamental investment philosophy, which includes:
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- Take advantage of opportunities to improve a portfolio’s risk-adjusted return
- Customize portfolios according to each client’s objectives and risk parameters
- Focus on preserving capital and generating a reliable income stream
Taxable Sustainable Portfolio
Investment Objective:
Maximize risk-adjusted total return while meeting specific sustainable objectives of foundations, endowments and individual investors seeking to invest with high social impact.
Portfolio Characteristics*:
Average effective maturity: 5-7 yrs
Average duration: 4.25–5.25 yrs
Average credit rating: AA-
Average annual turnover: 25%
Investment Philosophy
Breckinridge’s taxable sustainability strategy is based on our belief that responsible and purposeful investing will positively affect a portfolio’s long term safety and total return. Our research and portfolio management capabilities enable customization of portfolios with positive and negative “screens”, allowing portfolios to be invested according to client goals and values.
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Sustainable Considerations
- Eligible taxable municipal bond investments will consist of bonds issued to finance sustainable essential public purpose projects.
- Eligible high-quality corporate bond investments include bonds with above average and/or improving Environmental, Social and Governance (ESG) Disclosure Scores relative to sector peers.
- Eligible corporate bond investments will exclude bonds of corporations that derive more than 5% of their revenues from tobacco, alcohol, firearms or gaming.
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* Representative only. Portfolio Characteristics subject to change given market conditions and client objectives.
