Fixed Income  

Guide to fixed income and responsible investing

  • Describe how fixed income works in a sustainable portfolio
  • Explain some of the challenges of fixed income in the sustainability space
  • Identify the significance of government bonds
CPD
Approx.60min
Guide to fixed income and responsible investing
Credit: Unsplash

Introduction

Fixed income has been somewhat overlooked in the rush to re-make everything as ESG, but in many ways, fixed income managers have a greater say over the companies they are investing in.

This is because bond investors spend their money for the long term, and have much greater clout when it comes to investing. The companies they invest in are usually in direct need of the money they are raising and further down the line.

While financial advisers are considering how to develop a balanced portfolio, if their client has expressed ESG preferences, then fixed income is likely to be high on their list of aspirations.

This guide is worth 60 minutes' CPD. 

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to the first article, there are more sustainable fixed income bond funds than equity funds, true or false?

  2. What is a sustainability-linked bond?

  3. According to the third article, why would a sustainability manager not invest in short-dated bonds?

  4. Why, according to Lewis Aubrey-Johnson in the second article, are there limits to what is available to invest in, when it comes to transitioning companies?

  5. According to the second article, liquidity could suffer if the intention is to hold bonds to maturity, true or false?

  6. According to the fourth article, government bonds are unquestionably unethical, true or false?ethical

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe how fixed income works in a sustainable portfolio
  • Explain some of the challenges of fixed income in the sustainability space
  • Identify the significance of government bonds

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