PAM US ESG Investment Grade

The PAM US ESG Investment Grade strategy is a diversified high credit quality bond strategy that seeks to outperform the Bloomberg Barclays US Credit Index. The Strategy will invest primarily in U.S. companies across the investment grade spectrum, it seeks to limit exposure to firms with unmanaged material ESG risks (Sustainalytics) and increase exposure to ESG Leaders (MSCI).

 

Why US ESG Investment Grade Credit?

  • Corporate bonds have historically provided an attractive risk-reward profile over Government fixed income securities through higher yield, income levels and less sensitivity to interest rates

 

Why Pacific Asset Management for US ESG Investment Grade Credit?

  • ESG strategy based on very strong 13 year track in US IG Credit, funded with a sizable USD 500 mln
  • Focus on sector and security selection utilizing rigorous fundamental credit analysis complemented with a macro-economic overview and ESG integration
  • Large (22) and very experienced investment team covering the entire credit spectrum ‘AAA’ to ‘C’, which gives a unique perspective on relative value and offers clients the best risk/reward opportunities
  • PAM is a boutique investment manager with the support and infrastructure of a large organization
  • The investment process is based on time-tested investment principles such as diversification and capital preservation
  • Active management with the goal of achieving superior long-term performance

 

Who is Pacific Asset Management?

Pacific Asset management was founded in 2007 as a subsidiary of Pacific life, with a boutique structure. They are located in Newport Beach, California and are solely focused on corporate credit. The team consists of seasoned and proven investment professionals with on average nearly two decades of experience.

 

ESG Integration

PAM has implemented both positive and negative ESG screening in their investment process. The strategy seeks to increase exposure to ESG leaders by implementing a minimum average MSCI ESG quality score, limiting the exposure to firms with unmanaged material ESG risks (Sustainalytics) and setting a maximum average on Carbon Intensity. The Strategy also excludes Corporate Bonds with unresolved human rights violations and/or severe environmental damage, as well as the sovereign bonds of countries that violate the UN Guiding Principles on Business and Human Rights. (Additional exclusions are feasible, upon client’s request.)

 

Principal Investment philosophy

The cornerstone of Pacific Asset Management’s investment philosophy is fundamental analysis. This is combined with (1) a top-down assessment to complement the bottom-up analysis, (2) a focus on capital preservation and thus mitigating downside risk, (3) a team approach where all members of the investment team review, challenge, and share investment ideas, and (4) selective construction to build their portfolio.

PAM US ESG Investment Grade Fund Documentation