ESG Fixed Income

Overivew

Responsible investing for Deutsche Asset Management combines Environmental, Ethical, Social and Governance considerations with investors’ financial objectives. Deutsche Asset Management’s ESG fixed income capability aims to achieve consistent excess returns, with a distinct focus on risk management and accountability at every step of the process. Our investment process can be tailored as a standalone ESG corporate bond portfolio, or integrated into broader composite mandates.

By incorporating ESG criteria into the decision making process we believe that downside risk arising from non financial factors can be reduced, ultimately resulting in reduced volatility and improved risk adjusted returns.

We focus our investments in issuers that are leaders with respect to Environmental, social and Governance performance while at the same time are attractive investments from a traditional credit analysis point of view which remains the foundation of each investment decision.

As a specialist fixed income manager, we believe the following factors are essential to achieve consistent risk controlled performance, and are a distinctive characteristic of our approach in managing fixed income.

Independent idea generation. Analysts pursue research ideas without the constraint of a top down house view. The result is lower correlation among portfolio positions.

Systematic portfolio construction. This facilitates customisation, enhances efficient implementation and allows for better quality control and risk management.

Transparent framework. We maintain transparent a proactive approach to risk management. Our objective is to produce sources of return that are identifiable, measureable and controllable.

Clients of Deutsche Asset Management benefit from a truly global and integrated investment process in addition to full process transparency resulting from an open architecture culture.