Our Low Carbon Equity and Corporate Bond framework provides a straightforward and effective way for investors to align their portfolios with the transition to a low-carbon economy and minimises exposure to climate-related risks.
Low Carbon Equity
We offer clients the opportunity to achieve long-term returns broadly in line with the underlying equity index benchmark, while optimising to achieve the most efficient trade-off between carbon reduction and tracking error.
The solution allows clients to customise their portfolios to align with their specific carbon goals and risk budgets. In addition to setting the level of targeted carbon emission reduction or tracking error, investors can pre-select the developed market equity benchmark that represents their chosen starting universe.
Low Carbon Corporate Bond
Our State Street Low-Carbon Corporate Bond framework offers bond investors a way to achieve a lower carbon footprint, while maintaining similar returns to the performance of their selected fixed income benchmark. Our customised portfolios can minimise tracking error for a targeted level of carbon reduction or maximise carbon reduction for a targeted level of tracking error.
We can help clients achieve significant improvements in carbon intensity with minimal impact to credit quality or interest-rate risk relative to corporate bond benchmarks.
The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
Responsible-Factor (R Factor) scoring is designed by State Street to reflect certain ESG characteristics and does not represent investment performance. Results generated out of the scoring model is based on sustainability and corporate governance dimensions of a scored entity.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Past performance is not a reliable indicator of future performance.
The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee 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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