Bonding Over Fixed Income: Beyond ESG Ratings and Labels

High net worth investors are increasingly demanding ESG solutions from their financial advisors. But how do you fill that need when it comes to the fixed income side of the portfolio? In this comprehensive one-hour webinar, we’ll explore why an active approach to sustainable investing may be the key to escaping the broad-brush approach of just chasing “green bonds.”

In the upcoming webcast, Bonding Over Fixed Income: Beyond ESG Ratings and Labels, Alexandra Wilson-Elizondo, deputy head of global credit & senior portfolio manager at MacKay Shields LLC, and Janelle Woodward, president of MacKay Shields LLC, will explore the current marketplace, what investors should be looking for from their external fixed income managers, and ways in which asset managers can add value.

For example, the recently launched IQ MacKay ESG Core Plus Bond ETF (ESGB) focuses on investment in securities within the core bond universe that satisfy the environmental, social, and governance (ESG) criteria developed by MacKay Shields (MacKay), a fellow New York Life Investments boutique and a global asset manager focused on fixed income and equity investing.

“The team’s philosophy is rooted in the belief that strong risk-adjusted returns can be achieved by employing a strategy of eliminating uncompensated risk,” according to New York Life Investments.

ESGB is an actively managed strategy that seeks total return across a broad portfolio of fixed income securities while incorporating MacKay’s ESG analysis framework. The portfolio prioritizes issuers that demonstrate strong performance relative to peers across certain ESG metrics through selection and portfolio construction.

“MacKay Shields is a proud signatory of the Principles of Responsible Investment (“PRI”) and has a proven track record of managing ESG portfolios,” according to New York Life Investments.

ESGB invests at least 80% of its assets in debt or debt-related securities, including government bonds, corporate bonds, mortgage, and other asset-backed securities, and could include fixed or floating rates of interest. The fund will generally seek to maintain a portfolio modified duration within 2.5 years (plus or minus) of the duration of the Bloomberg U.S. Aggregate Bond Index. Additionally, ESGB will invest at least 80% of its assets in securities that meet MacKay’s proprietary ESG methodology standards.

Financial advisors who are interested in learning more about green bonds and ESG investing can register for the Wednesday, September 29 webcast here.