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.
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.
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.