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    Investment Strategies

    Address Climate Change in Your Bond Portfolio

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    Rupert Cadbury, Fixed Income Portfolio Strategist outlines the key features and benefits of the Sustainable Climate Bond Funds

    Announcing Our New Sustainable Climate Bond Funds

    Imagine if you could improve your bond portfolio’s carbon profile and reduce climate risk, while keeping risk and return characteristics broadly in place.

    This is the rationale behind the State Street Sustainable Climate Bond Funds, which adopt a systematic mitigation and adaptation approach that targets Paris-aligned reductions in carbon emissions, fossil fuel and brown revenues exposure, and reallocates capital towards companies benefiting from low-carbon technologies. The Funds also increase exposure to green bonds, adapting companies and bond issuers investing in the solutions needed to achieve net zero by 2050.

    Our Four-step Investment Process

    1. Start with the Right Universe

    Clients can select any standard investment grade or high-yield credit or aggregate benchmark which include corporate bonds. We first incorporate aset of screens that are aligned with our climate and ESG objectives. We then utilise three sets of exclusions based on product involvement and prescriptive regulatory screens.

    2. Source the Best Data

    We source the highest-quality climate and ESG data from leading dataproviders — Trucost, Climate Bonds Initiative, ISS ESG, MSCI, Sustainalytics and our internal R-FactorTM.

    3. Design for Optimal Outcomes

    We use a mitigation and adaptation framework to rebalance the portfolio towards companies that will achieve our stated objectives:

    Reduce Exposure to companies with worse climate profiles. Eliminate highly polluting sectors

    Increase Exposure to green bonds which funds projects that have positiveenvironmental and/or elminate benefits

    Increase Resiliency by targeting companies that are positioned to benefitfrom transition to the low-carbon economy.

    We then balance the portfolio to target the highest expected risk-adjusted return, given the desired constraints

    4. Maximise Value

    The portfolio is implemented using an indexed approach to deliver aconsistent, cost-efficient and diversified bond exposure.

    The Funds Aim to Achieve the Following Objectives:

    Discover More

    Read our full commentary for further information on our Sustainable Climate Bond Funds.

    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 seek professional advice and consider the Product Disclosure Statement (PDS) and target market determination, available at www.ssga.com, before deciding whether to acquire or continue to hold units in the Funds.

    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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