We are helping investors understand, control and benefit from the quantifiable trade-offs between carbon reduction and tracking error. Most importantly, we are demonstrating that significant improvements in carbon intensity can be achieved with minimal impact to credit quality or interest-rate risk relative to corporate bond benchmarks.
The State Street Low-Carbon Equity Index Solution is a long-only investment approach that enables the creation of customized portfolios that can minimize tracking error for a targeted level of carbon reduction or maximize carbon reduction for a targeted level of tracking error.
Aligning for the Future
As investors look to align their portfolios with the transition to a low-carbon economy and minimize potential exposure to climate risk — which could arise from regulation and carbon tax — the Low-Carbon Equity Index Solution provides a straightforward, effective way to take the first step.
The State Street Low-Carbon Corporate Bond Strategy seeks to create customized portfolios with a lower carbon footprint and similar returns to the performance of the client’s selected fixed income benchmark.
The Strategy is designed to create customized portfolios that achieve the client’s goals for carbon reduction within constraints for tracking error, credit quality, duration, interest rate exposure and other factors.
Two Customizable Features
Target Level of Carbon Reduction
Clients select a target range of carbon reduction that they would like to achieve, relative to the benchmark index.
Clients select the benchmark to represent their chosen starting universe; available benchmarks include any diversified developed market corporate bond index.
Using this strategy we can now create customized portfolios for clients that have significantly lower carbon footprints but nonetheless produce similar returns to their selected fixed income benchmarks.
The strategy is available now to help investors reach their goals for reducing carbon emissions without compromising their investment objectives.
This website is intended for persons resident in Australia. State Street Global Advisors, Australia Services Limited ABN 16 108 671 441, AFSL Number 274900 ("SSGA, ASL") is the product issuer. State Street Global Advisors, Australia, Limited (AFSL Number 238276, ABN 42 003 914 225) (“SSGA Australia”) is the Investment Manager. The material on this website is general information only and does not take into account your individual objectives, financial situation or needs. You should read and consider the Product Disclosure Statement (PDS) for the relevant product carefully before making an investment decision and consult your financial adviser. You can access our PDS online or by calling us. The offer made in our PDS is available to persons receiving the PDS within Australia and applications from outside Australia will not be accepted. Past performance is not a reliable indicator of future performance. Investing entails risks and there can be no assurance that State Street Global Advisors will achieve profits or avoid incurring losses.
Investing involves risk including the risk of loss of principal. This material should not be considered a solicitation to apply for interests in the Funds and investors should obtain independent financial and other professional advice before making investment decisions. There is no representation or warranty as to the currency or accuracy of, nor liability for, decisions based on such information. Performance quoted represents past performance, which is not a reliable indicator of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
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