Solution Focus
Responsible Horizons strategies aim to achieve a financial return alongside positive environmental or social outcomes, with long-term sustainability in mind.
Many investors are looking to achieve a positive environmental or social impact, and when looking at sustainable investing, are seeking businesses that will stand the test of time.
Responsible Horizons starts with a recognition that the world we live in is subject to unprecedented uncertainty due to era defining mega-issues like climate change and rising social inequality. For sustainable investing funds to achieve their objectives the underlying institutions they invest in will need to be compatible with this changing world.
Every Responsible Horizons portfolio will aim to:
Combining all these elements, we believe these principles mean Responsible Horizons can help align investments to client’s values, as well as offer the potential for an attractive return.
Prime is Insight Investment’s proprietary environmental, social and governance (ESG) rating system, which uses extensive global data and in-depth analysis to highlight key ESG risks.
Insight’s portfolio managers and analysts use Prime to support their investment decisions, inform their engagement with companies, and help to build portfolios with sustainability goals.
ABOUT INSIGHT
Insight Investment is one of the world’s largest investment managers, with extensive expertise in risk management, fixed income and absolute return strategies.
A founding signatory to the UN-supported Principles for Responsible Investment (PRI) in 2006, Insight has long believed that ESG factors can affect the value of investments.
Responsible Horizons aims to build on Insight’s evidence-based approach to both investment research and ESG analysis, supported by ESG ratings from Insight’s proprietary model Prime, to offer leading solutions for investors seeking to express their values as they pursue attractive returns.
Responsible Horizons strategies aim to achieve a financial return alongside positive environmental or social outcomes, with long-term sustainability in mind.
1 As at 31 March 2023. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients. Figures shown in EUR. FX rates as per WM Reuters 4pm spot rates. Reflects the AUM of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL), Insight Investment Management (Europe) Limited (IIMEL) and Insight North America LLC (INA), each of which provides asset management services.
Fund Managers: Lutz Engberding & Fabien Collado
Fund Managers: Lutz Engberding & Fabien Collado
Strategy benchmarks
Responsible Horizons Euro Impact Bond Strategy
Benchmark: The Strategy will measure its performance against the Bloomberg Barclays MSCI Euro Corporate Green Bond Index, (the “Benchmark”). The Strategy is actively managed, which means the Investment Manager has discretion to invest outside the Benchmark subject to the investment objective and policy. However, as the Benchmark covers a significant proportion of the investable universe, the majority of the Strategy’s holdings will be constituents of the Benchmark and the weightings in the portfolio may be similar to those of the Benchmark. The investment strategy will restrict the extent to which the portfolio holdings may deviate from the Benchmark and consequently the extent to which the Strategy can outperform the Benchmark.
Responsible Horizons Euro Corporate Bond Strategy
Benchmark: The Strategy will measure its performance against the Bloomberg Barclays Euro Aggregate Corporate Total Return Index (the “Benchmark”).
The Strategy is actively managed, which means the Investment Manager has discretion to invest outside the Benchmark subject to the investment objective and policy. However, as the Benchmark covers a significant proportion of the investable universe, the majority of the Strategy’s holdings will be constituents of the Benchmark and the weightings in the portfolio may be similar to those of the Benchmark. The investment strategy will restrict the extent to which the portfolio holdings may deviate from the Benchmark and consequently the extent to which the Strategy can outperform the Benchmark.
Responsible Horizons EM Debt Impact Strategy
Benchmark: The Strategy follows an ESG investment approach. This means factors other than financial performance are considered as part of the investment process. This carries the risk that the Strategy’s performance may be negatively impacted due to restrictions placed on its exposure to certain sectors or types of investments. The approach taken may not reflect the opinions of any particular investor. In addition, in following an ESG investment approach, the Fund is dependent upon information and data from third parties (which may include providers for research reports, screenings, ratings and/or analysis such as index providers and consultants). Such information or data may be incomplete, inaccurate or inconsistent.
Investment Risks
The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.
Objective/Performance Risk: There is no guarantee that the Strategy will achieve its objectives.
Environmental, Social and Governance (ESG) Investment Approach Risk: This Strategy can be considered to follow an ESG investment approach or incorporate elements of an ESG investment approach, which may cause it to perform differently than other Strategy’s that have a similar objective but which do not integrate an ESG investment approach (or elements thereof) when selecting securities. In addition, in following an ESG investment approach, the Strategy is dependent upon information and data from third parties (which may include providers for research reports, screenings, ratings and/or analysis such as index providers and consultants). Such information or data may be incomplete, inaccurate or inconsistent.
Insight embeds ESG risk analysis across its investment processes: every portfolio manager and analyst is expected to take ESG factors into account where they are material and relevant to the investments they oversee.
Global Chief Investment Officer
Head of Responsible Investment
Portfolio manager
Head of European Credit, Chair of Responsible Investment Committee
Underpinned by Insight’s precise and evidence-based approach, Responsible Horizons emphasises both in-depth investment research and active engagement to understand risks and improve behaviour.
Robert Sawbridge, Head of Responsible Investment
Insight Investment uses impact bonds as an umbrella term for fixed income issuances the proceeds of which are dedicated solely to projects intended to meet environmental or social criteria. This encompasses the universe of bonds referred to as green or sustainable as well as more specific outcome-oriented issuances such as blue, gender and transition bonds.
Important information
*Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Managers Limited (BNYMFM), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.
1010163