CT (Lux) Global Social Bond
This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID / KID before making any final investment decisions.
A fund built to deliver positive outcomes. Both socially and financially
Launched on 5 December 2023, the CT (Lux) Global Social Bond complements our existing CT (Lux) European Social Bond, providing your clients with a wider choice of geographical remit for their social bond exposure.
As with the existing fund, bond investments are only included in the CT (Lux) Global Social Bond if we are confident in their likelihood to deliver both a financial return and and positive social outcomes.
What makes this fund different?
- A dual objective of providing both a financial return in line with the benchmark and a positive social outcome
- Uses the power of the bond market to target positive social outcomes in a growing global universe
- A Social Advisory Panel in partnership with The Good Economy and Steward Redqueen to review, advise and monitor the fund’s social objectives
- A proprietary social assessment methodology to guide investment decisions on each and every bond we invest in
We actively allocate capital globally to support or fund socially beneficial activities and development, using a broad universe of bonds issued by corporates, government agencies, regional and local government bodies, mutuals and charities. Bond issuers include social policy leaders that use public bond markets to finance large scale social solutions.
Why choose Columbia Threadneedle Investments?
We are a pioneer in in responsible investing and remain a leading advocate in the development of the fast-moving green, sustainability and social bond markets. We launched the UK’s first mainstream, daily liquid social bond strategy in 2013, followed by a European social bond strategy to meet evolving client demand.
Investing responsibly is not a new idea for us. We were one of the earliest adopters of the UN Principles for Responsible Investment and launched Europe’s first ethically screened equity fund in 1984. We’ve been at the forefront of active ownership – engaging with companies for over three decades, helping shape industry policies and standards.
It comes from a belief that applying responsible investment principles can reduce risk and enhance outcomes over the long term. It’s an ethos that continually pushes us forward to drive change through a more responsible investment approach – for us, our clients, and the wider world.
Meet the team
Tammie Tang a rejoint la société en 2012 en qualité de gérante de portfeuille investment grade. Elle est gérante principlale de divers portefeuilles de crédit britanniques, en ce compris le Threadneedle Pensions Corporate Bond Fund. Tammie est également fiduciaire désignée de la société pour le plan de pension à prestations définies de Threadneedle.
Précédemment, Tammie a occupé différents postes chez Pricewaterhouse Coopers à Sydney et JPMorgan à New York. Membre de L'Institute of Actuaries Australia, elle est titulaire d'un master en statistiques de L'Université de Nouvelle-Galles du Sud.
Andrew Dewar is a portfolio manager in the Investment Grade Credit team at Columbia Threadneedle Investments, having joined the company in 2022. He is responsible for managing investment grade credit portfolios for the company’s European insurance clients and will work with the Global Insurance team to develop its proposition and grow its assets under management.
Andrew previously worked as a portfolio manager at GAM Investments where he was responsible for portfolio construction, implementation, and ongoing management of credit portfolios and bespoke client mandates. Andrew held other credit analysis, finance and advisory roles at GAM Investments and Westpac and has worked in the financial services industry since 2012.
Andrew has a Bachelor of Commerce in Management from Otago University and a Graduate Diploma in Business Studies from Massey University. He also holds the Chartered Financial Analyst® designation and the CFA Institute Certificate in ESG Investing.
Letty Byatt is a Social Impact Analyst in the Investment Grade Credit team at Columbia Threadneedle Investments. She joined the company in 2022 and works closely with the portfolio managers to identify positive social impact opportunities for the social bond strategies. Letty also focuses on fixed income issuer and industry engagement to promote social impact investment awareness and best practice.
Prior to this, Letty held senior roles in responsible investment reporting and client services at Royal London Asset Management. She has worked in the financial services industry since 2017.
Letty has a BSc (hons) in Psychology with Middle Eastern Studies and French Language. She also holds the CFA Institute Certificate in ESG Investing and has completed a Sustainable Finance course at Cambridge University Institute for Sustainability Leadership.
Andrew Brown is a Portfolio Manager within the Credit team. Andrew joined Columbia Threadneedle through the acquisition of BMO GAM (EMEA) in 2021, having previously been with BMO since 2006. Prior to this, he worked for M&G Investment Management as a Credit Analyst. Andrew holds an MSc in Investment Analysis from the University of Stirling and an MA in Economics from the University of Edinburgh and is an Associate of the CFA Society of the UK.
Our approach and process
We identify bond issuers that seek to achieve positive social outcomes from seven key social development fields to form a broad global-based social universe of c6,800 bonds. We target the most beneficial projects in the areas of most need, with geography being a key driver. These outcomes are then mapped to the underlying 169 targets of the 17 UN Sustainable Development Goals (SDGs).
Our Investment Grade credit analysts evaluate issuers using our established credit research process to ensure investment ideas meet the necessary financial, governance and liquidity requirements for inclusion in the portfolio. Particular attention is paid to managing liquidity and a proportion of the fund will be in highly liquid but lower yielding investments. A bond will not be included if it fails the financial analysis.
We then use our proprietary bottom-up social assessment process (see diagram below) to provide a social impact score to categorise and rate each and every bond’s eligibility, which is led by the Social Bond investment team but also reviewed by our social partner, The Good Economy. The first step assigns an impact category of either A, B or C, the second step assigs a social intensity score from 0 to 31 (which is sorted into quartiles). Overall, the process generates a discrete social score (A1 to C4), which is used to compare bonds meeting different social needs and monitors the degree of the portfolio’s social intensity over time.
Social Rating Methodology
We are proactive with corporates and governments in the fast-moving growth of the social bond market. We also actively engage with company managements on material ESG concerns, evaluating issuers’ responses to past or present controversies to ensure appropriate action is taken.
You can download the fund’s social investment guidelines from “Key documents” below.
Learn more about our partners
We work with a Social Advisory Panel which reviews, advises, monitors and reports on the fund’s social objectives. The panel comprises three members from our social partner The Good Economy, one from our social adviser Steward Redqueen, two from Columbia Threadneedle Investments plus one other independent.
The panel is involved in these key areas:
- Advising on our proprietary social classification methodology
- Challenging our social assessments
- Producing an independent annual social outcomes report
Key documents
Full fund details
Insights
EBITDA and the perils of tooth-fairy investing
In Credit Weekly Snapshot – December 2024
European banks: strong fundamentals and pockets of value
Get in touch
Key risks
The Fund aims to invest in assets that are deemed to be supporting and funding socially beneficial activities and development and utilises a Social Assessment Methodology. This will affect the Fund’s exposure to certain issuers, industries, sectors, and regions, and may impact the relative performance of the Fund positively or negatively, depending on whether such investments are in or out of favour. The concept of socially beneficial activities and development is subjective. It is therefore possible that an investment may not perform in a way that an investor considers to be a socially beneficial activity or development, even though it has been selected in accordance with the Social Assessment Methodology.
Investment Risk – The value of investments can fall as well as rise and investors might not get back the sum originally invested.
Currency Risk – Where investments are in assets that are denominated in multiple currencies, or currencies other than your own, changes in exchange rates may affect the value of the investments.
Issuer Risk – The Fund invests in securities whose value would be significantly affected if the issuer refused, was unable to or was perceived to be unable to pay.
Liquidity Risk – The fund holds assets which could prove difficult to sell. The fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities.
Interest Rate Risk – Changes in interest rates are likely to affect the fund’s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa.
Valuation Risk – The fund’s assets may sometimes be difficult to value objectively and the actual value may not be recognised until assets are sold.
Derivatives for EPM / Hedging – The investment policy of the fund allows it to invest in derivatives for the purposes of reducing risk or minimising the cost of transactions.
Volatility Risk – The fund may exhibit significant price volatility.
Social Investment Criteria – The Fund aims to invest in assets that are deemed to be supporting and funding socially beneficial activities and development and utilises a Social Assessment Methodology. This will affect the Fund’s exposure to certain issuers, industries, sectors, and regions, and may impact the relative performance of the Fund positively or negatively, depending on whether such investments are in or out of favour. The concept of socially beneficial activities and development is subjective. It is therefore possible that an investment may not perform in a way that an investor considers to be a socially beneficial activity or development, even though it has been selected in accordance with the Social Assessment Methodology.
Important information
Your capital is at risk. This financial promotion is issued for marketing and information purposes only by Columbia Threadneedle Investments.
The Fund is a sub-fund of Columbia Threadneedle (Lux) I, a Luxembourg domiciled investment company with variable capital (“SICAV”), managed by Threadneedle Management Luxembourg S.A.
The SICAV’s current Prospectus, the Key Investor Information Document (KIID)/Key Information Document (KID) and the summary of investor rights are available in English and/ or in local languages (where applicable) from the Management Company Threadneedle Management Luxembourg S.A., International Financial Data Services (Luxembourg) S.A., your financial advisor and/or on our website www.columbiathreadneedle.com. Threadneedle Management Luxembourg S.A. may decide to terminate the arrangements made for the marketing of the SICAV. Pursuant to article 1:107 of the Act of Financial Supervision, the sub-fund is included in the register that is kept by the AFM. Past performance is calculated according to the BVI method in Germany.
These documents are available in Switzerland from the Swiss Representative and Paying Agent CACEIS Investor Services Bank S.A.. Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH 8027 Zurich.
The Fund is categorised as Article 9 under the EU Regulation 2019/2088 on sustainability related disclosures in the financial services sector (SFDR) and promote environmental or social characteristics as an objective. The decision to invest in the promoted fund should take into account all the characteristics or objectives of the promoted fund as described in its prospectus. The fund’s sustainability related disclosures can be found on our website columbiathreadneedle.com.
This material should not be considered as an offer, solicitation, advice or an investment recommendation. An investment may not be suitable for all investors and independent professional advice, including tax advice, should be sought where appropriate. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness.
In Spain, Columbia Threadneedle (Lux) I is registered with the CNMV under No. 177. The Fund is a non-Spanish collective investment scheme duly registered with the CNMV for marketing in Spain. The fund should be subscribed to through locally authorised appointed distributors. Investors must read the relevant Prospectus and KID for each fund they want to invest before subscribing. All other statutory documentation, as well as the NAV can be obtained from www.columbiathreadneedle.com.
In the EEA and Switzerland: Issued by Threadneedle Management Luxembourg S.A. registered with the Registre de Commerce et des Sociétés (Luxembourg), Registered No. B 110242, 44 rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg. In the UK: Issued by Threadneedle Asset Management Limited. Registered in England and Wales, No. 573204. Registered Office: 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. In the Middle East: This document is distributed by Columbia Threadneedle Investments (ME) Limited, which is regulated by the Dubai Financial Services Authority (DFSA). For Distributors: This document is intended to provide distributors with information about Group products and services and is not for further distribution. For Institutional Clients: The information in this document is not intended as financial advice and is only intended for persons with appropriate investment knowledge and who meet the regulatory criteria to be classified as a Professional Client or Market Counterparties and no other Person should act upon it.
This document may be made available to you by an affiliated company which is part of the Columbia Threadneedle Investments group of companies: Columbia Threadneedle Management Limited in the UK; Columbia Threadneedle Netherlands B.V. in the EEA; in Switzerland, by Threadneedle Portfolio Services AG, Registered address: Claridenstrasse 41, 8002 Zurich, Switzerland. Certain funds and/or share classes may not be available in all jurisdictions.
© Columbia Threadneedle Investments. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
