Solution Focus
Responsible Horizons strategies aim to achieve a financial return alongside positive environmental or social outcomes, with long-term sustainability in mind.
What is Responsible Horizons?
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:
- Reflect long-term sustainable themes, such as climate change and social inequality.
- Emphasise the best and avoid the worst performers on environmental, social and governance (ESG) issues, based on research powered by Insight Prime.
- Avoid certain investments with a negative impact, including tobacco producers.
- Apply a higher hurdle for environmentally sensitive industries, like energy companies.
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: the ESG data behind Responsible Horizons
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
About Insight Investment
Insight Investment is one of the world’s largest investment managers, with extensive expertise in risk management, fixed income and absolute return strategies.
Why Insight?
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.
Solution Focus
Responsible Horizons strategies aim to achieve a financial return alongside positive environmental or social outcomes, with long-term sustainability in mind.
Scale
Insight manages over €764.1bn1 in assets under management.
Expertise
A dedicated Responsible Investment Team of 12 specialists supports Insight’s investment professionals in their pursuit of a responsible approach to investment.1
Innovation
Insight has developed cutting-edge proprietary tools for corporate and sovereign ESG risks, corporate climate risks, and impact bonds
Experience
In 2022, over half of 1,178 engagements conducted by our research analysts with debt issuers included some form of ESG dialogue; and we completed over 140 dedicated ESG engagements.
Scale
Expertise
Innovation
Experience
Solution Focus
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 benchmarks
Responsible Horizons Euro Impact Bond Fund
Benchmark: The Fund will measure its performance against the Bloomberg Barclays MSCI Euro Corporate Green Bond Index, (the “Benchmark”). The Fund 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 Fund’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 Fund can outperform the Benchmark.
Responsible Horizons Euro Corporate Bond Fund
Benchmark: The Fund will measure its performance against the Bloomberg Barclays Euro Aggregate Corporate Total Return Index (the “Benchmark”).
The Fund 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 Fund’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 Fund can outperform the Benchmark.
Responsible Horizons EM Debt Impact Fund
Benchmark: The Fund will measure its performance against the JP Morgan EM Green, Social and Sustainable Bond Index Diversified, (the “Benchmark”) for comparison purposes. However, the Investment Manager does not seek to align the Fund’s performance with that of the Benchmark and the performance of the Fund and the Benchmark may differ significantly.
The Fund is actively managed, which means the Investment Manager has discretion to invest outside the Benchmark subject to the investment objective and policy. The Fund has an unconstrained investment style, and as such it will not take the Benchmark into account when selecting the Fund’s Investments.
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 Fund will achieve its objectives.
Environmental, Social and Governance (ESG) Investment Approach Risk: This Fund 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 funds 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 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.
Meet the Insight team
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.
Adrian Grey
Global Chief Investment Officer
Robert Sawbridge
Head of Responsible Investment
Fabien Collado
Portfolio manager
Lucy Speake
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 senior portfolio manager Jeffrey Burger looks at some of the attributes of US municipal bonds against a backdrop of higher interest rates.
Insight Investment head of efficient beta Paul Benson discusses the potential of unlocking liquidity and reducing transaction costs in high yield.
In this edition of market watch, Shamik Dhar, Chief Economist at BNY Mellon Investment Management explores the increasing feasibility that the US engineers a soft landing or immaculate disinflation. Given that US consumer price index figures were lower than expected for the fourth consecutive time, what does this mean for markets?
According to a paper (Tidal Forces: Dissecting the interest rate equation) from BNY Mellon Investment Management’s chief economist, Shamik Dhar, rates are likely to settle between 4.5% and 5.5% – a range not seen since 2008 and certainly more reminiscent of the 1980s and 1990s.
An interview with Simon Cooke, portfolio manager, emerging market fixed Income, Insight 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.
Newton head of mixed assets investment, Paul Flood, explains the growing appeal of bond investment for multi-asset strategies.
Inflationary pressures are creating dislocations and potential market advantages attractive to fixed income investors.
Lars Middleton, portfolio manager and a member of the team managing the BNY Mellon Real Return strategy, gives an update on positioning and areas of opportunity ahead.
Against a much-changed backdrop compared with the past few years, Paul Flood, head of mixed assets investments at Newton, and Alison El-Araby, portfolio manager, look at the challenges and opportunities facing investors.
As well as providing diversification, secured finance is now offering among the highest yield for assets of investment grade quality.
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.
Shamik Dhar, chief economist at BNY Mellon Investment Management, shares his views on why fixed income could be more attractive now than it’s been in decades.
After a rough year for global bond markets – one of the worst in recent history – has value returned to the asset class? Managers across Newton and Insight along with BNY Mellon IM’s economist team outline their views.
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For a full list of risks applicable to these funds, please refer to the Prospectus or other offering documents. Please refer to the prospectus, and the KIID before making any investment decisions. Documents are available in English and an official language of the jurisdictions in which the Fund is registered for public sale. Go to fund-centre.
The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.
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.
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