The Fund

The Rathbones Ethical bond fund is managed by Bryn Jones alongside Noelle Cazalis who, combined, have over 30 years’ experience investing in equity and fixed income markets. The aim of this fund is to provide a regular, above-average income through investing in a range of bonds and bond market instruments that meet strict ethical and financial criteria.

This fund defines ‘Environmental, Social & Governance’ (ESG) investing as an investment strategy that believes long-term growth can be achieved by companies that conduct their business and apply capital responsibly, giving full consideration to a range of ethical issues which may affect wider society.

Greenbank

This fund utilises their specialist ethical investment unit, Greenbank, who help deliver oversight into ethical decision-making. When screening for suitable investments, the fund excludes bonds issued by organisations that are involved in alcohol, armaments, gambling or tobacco. They also screen for positive elements such as environmental management, community investment and human rights compliance.

The portfolio likes to tilt towards companies that consider climate change and have carbon-light business models. This helps to reduce the structural challenges businesses will face in the future as we shift to a more sustainable economy. It is thought some of the structurally challenged companies such as fossil-fuel companies will start to suffer from carbon taxes and regulation, whereas new subsidies to promote low-carbon activates will help companies on the other side of this.