A fund that combines a comprehensive approach to sustainability with an active, flexible approach to investing by identifying the best ideas within the global fixed-income universe.
Combining Value with Values
The primary objective of the Fund is to target to generate an attractive rate of return over a full three-to-five-year market cycle. For the purposes of measuring the sustainable objectives only, the benchmark is the Bloomberg Global Aggregate Index. The fund is fully hedged to the New Zealand dollar.
The Fund utilises an active, flexible approach to investing in global fixed income securities. Sustainable management means that we integrate Environmental, Social and Governance (“ESG”) considerations into investment decision-making, with minimum thresholds of sustainability for the corporates and sovereigns in the portfolio. The Fund will not knowingly invest in corporate sectors that are not aligned with our sustainable investing approach, nor in securities of issuers that are subject to Salt’s Exclusion List. For corporate holdings, the Fund will maintain a lower carbon footprint than the corporate bond component of the Bloomberg Global Aggregate Index. The Fund may hold a proportion of its portfolio in Sustainable Bonds, defined as labelled debt instruments where the issuer has committed to financing or attaining specific environmental and/or social objectives. For more information, please read the Information Memorandum
The objectives of this top-down selection process are to:
Reduce exposure to material ESG risk and negative sustainability impacts, through restriction screening of controversial sectors such as weapons, tobacco and some fossil fuels, as well as international norms violations;
Tilt the portfolio in favour of the 80% strongest sustainability performers across corporates, by sub- sector, and sovereigns; and
Contribute to positive outcomes based on key sustainability themes, with a particular focus on low carbon intensity.
About the appointed underlying investment manager:
Morgan Stanley Investment Management (MSIM) was established in June 1975. MSIM extended to London in 1985 to lead the firm’s work in international and global investment, offering investment in the world’s equity and fixed-income markets, either separately or as a balanced portfolio, for all institutions. On 1 March 2021, Morgan Stanley completed its acquisition of Eaton Vance, bringing together two thriving organisations with distinctive and highly complementary strengths in investment management, distribution, and client service.
Today, MSIM manages US$1.28 trillion* in assets under management (as of 30 September 2022), dedicated to providing investment and risk-management solutions to a wide range of investors and institutions including corporations, pension plans, intermediaries, sovereign wealth funds, central banks, endowments and foundations, governments and consultant partners worldwide. With over four decades of asset management experience, our investment strategies span the risk/return spectrum across geographies, investment styles and asset classes, including equity, fixed income, alternatives, and private markets. With 1,306 investment professionals worldwide, and 56 offices** in 25 countries, MSIM is able to provide in-depth local knowledge and expertise while channelling the strength of our global presence and resources.
* Assets under management (AUM) includes all discretionary and non-discretionary assets of MSIM and all advisory affiliates. MSIM Fund of Fund assets represent assets under management and assets under supervision. MSIM direct private investing assets represents the basis on which the firm earns management fees, not the market value of the assets owned.
** Eaton Vance Offices in the same city as MSIM offices are counted separately. Home offices are not counted in # of offices, cities or countries.
Unique ESG Integration Approach in Building a Sustainable Fixed Income Portfolio
We Consider the Entire Universe of Fixed Income, Through a Sustainability Lens
The information presented above represents how the investment team generally applies their investment processes under normal market conditions.
Delivering the Best of our Proprietary Bottom-Up ESG Analysis & Processes
The top-down processes described above are supported by the full range of the Morgan Stanley Investment Management Fixed Income team’s bottom-up analysis and processes from our Sustainable Investing Toolkit:
Note: The information presented above represents how the investment team generally applies their investment processes under normal market conditions.
FIXED INCOME REPORT
Engagement and sustainability advocacy are increasingly important tools for driving positive change and capturing potential alpha opportunities. As active bond investors, we believe we have a duty to leverage our access to a variety of debt-issuing organisations and to express our expectations around how these organisations should improve their processes and practices, as we deploy capital toward positive environmental and social outcomes.
This Fund is For Wholesale Investors Only
The information in this publication has been prepared from sources believed to be reliable and accurate at the time of preparation but Salt Funds Management Limited, its officers, and directors make no representation or warranty as to the accuracy or completeness of any of the information contained within. All analyses, opinions, and views reflect a judgment at the date of publication and are subject to change without notice. This publication is provided for general information purposes only. To the extent that any of the information in this publication does constitute advice, it does not take into account an investor’s financial situation or goals. An investor should, before making any investment decisions, seek professional advice, having regard to the investor’s financial situation and goals. Past performance is not a reliable indicator of future performance and no representation or warranty, express or implied, is made regarding future performance. This presentation is solely for the use of the person or persons to whom it is provided and must not be distributed or copied, in part or in whole, without the permission of Salt Funds Management Limited.
Salt Investment Funds Limited is the issuer of units in Salt Wholesale Funds. The Information Memorandum for Salt Wholesale Funds is available upon request.