Bestinvest says
The fund adopts a dark green approach to ethical bond investing; a separate external ethical screen is initially employed and excludes the manager from investing in companies involved in areas such as nuclear power, animal welfare, gambling, tobacco, oppressive regimes and alcohol. This can limit investment choice and could hinder returns.
The aim is to invest in bonds that have been issued by socially aware companies. The fund will invest over 80% of the portfolio in investment grade bonds with up to 10% in non investment grade high yield Bonds. The objective is to maximise total return by investing in sterling denominated bonds that meet the ethical criteria. Sources of alpha include duration, asset allocation, yield curve positioning, stock selection, rating and sector preferences.