Finding the right target – using ESG in credit investing
Ashley Hamilton Claxton, Head of Responsible Investment & Martin Foden, Head of Credit Research
About this talk
There’s a temptation to think that both equity and credit investors should look at ESG in the same way. This approach can lead to a quicker roll-out, as existing, more established equity process can just be used for credit analysis.
In this session, RLAM's Ashley Claxton and Martin Foden will explain why they think that the scope and application of ESG factors is quite different: from the different make-up of bond indices, to the subtleties of bond structure, a differentiated approach has to be taken. The only similarity? That if ESG is seen as an ‘extra’ part of your security analysis, you’re probably not doing it right.
Ashley Hamilton Claxton is responsible for coordinating and overseeing RLAM’s approach to responsible investing across all of our asset classes. She has management responsibility for our company engagement, corporate governance analysis, and proxy voting. Ashley is RLAM’s subject matter expert and spokesperson on responsible investing and corporate governance.
Martin Foden joined RLAM at the start of 1998. He initially joined RLAM's UK Equity Team, with responsibility for analysing the transport, business services and construction sectors, as well as managing balanced pension funds. This experience greatly enhanced RLAM’s credit research capabilities when he joined the Fixed Income Team at the beginning of 2003. Since moving to the Fixed Income Team, he has been instrumental in developing RLAM’s analytical process through the advancement of the team’s cashflow forecasting and evaluation of issuer structures.