GLG RI Sustainable Credit Opportunities

GLG RI Sustainable Credit Opportunities investment objective is to provide income and capital growth by investing directly or indirectly in fixed and floating rate securities worldwide, while giving careful consideration to long-term environmental, social and governance (ESG) criteria. At least 50% of the portfolio on a net long basis will be aligned to companies that are either E (environmentally) and/or S (socially) aligned. The team’s philosophy is based on an unconstrained, high conviction approach, which involves rigorous fundamental research to uncover value across the universe.

  • The strategy aims to provide income and capital growth by investing directly or indirectly in fixed and floating rate securities globally
  • An established investment process has been enhanced by integrating sustainability analysis, the strategy will give careful consideration to long-term environmental, social and governance criteria
  • Bottom-up analysis is at the forefront of the strategy’s investment process and is intended as the primary driver of performance whilst investment themes provide a top-down lens as the secondary driver
  • The strategy will use the ICE BofA European Currency High Yield Constrained Index and the ICE BofA Global High Yield Index as official benchmarks for the strategy
 

The Strategy may be regarded as promoting, among other characteristics, environmental and social characteristics. The Investment Manager applies an exclusion list which prevents it from investing in controversial stocks or industries which may be related to arms and munitions, nuclear weapons, tobacco and companies which have moderate to significant amount of revenues associated with coal production.

Approach

The investment team will apply a sustainable overlay to their established bottom-up approach which is driven by a repeatable, data driven investment process. The strategy seeks to avoid many of the risks that a large number of macro focused high yield strategies are subject to, through their highly dynamic security selection process.

Bottom-up credit selection forms the focal point of the investment process and the investment team conducts a rigorous analysis of an issuer’s solvency and ability to meet its debt obligations before any investment is made. The team conduct in-depth research into issuers’ business models and assess multiple fundamental factors both on a historical and forward looking basis to derive how future credit quality may evolve.

Investment themes help to provide the top-down lens which bottom-up decisions are viewed through. These themes will be formed based on consideration of the macroeconomic backdrop as well as consumer trends, technology, demographics, regulation and other secular drivers that may impact the investment landscape at a regional, country, sector or issuer level.

The unconstrained remit of the strategy provides the portfolio manager with the freedom to avoid unwanted risk concentrations by region, currency or sector that exist from time to time in credit benchmarks.

This repeatable and iterative process is designed to build both a high conviction yet diversified portfolio through active management, with the aim of delivering attractive risk adjusted returns and consistent alpha through all market conditions.

The team will also look to actively engage with management on environmental goals while setting sustainability targets and pressing for better governance. The team will also send an engagement letter to new issuers and work with management to achieve sustainable growth.

The Investment team are supported by Man Group’s Responsible Investment team who are responsible for the day to day implementation of the Man Group RI policy. The team works to ensure investment managers across Man Group’s investment engines are provided with the tools and education in order to integrate the best practices in responsible investment that are most relevant to their strategy.

Approach Long-only
Asset Class Credit
Geographic Focus Global