GLG Sustainable Strategic Income

The GLG Sustainable Strategic Income Strategy (‘Strategy’) is a global sustainable focused fixed income Strategy. The Portfolio will invest in fixed income securities that are aligned to the UN Sustainable Development Goals (the “SDGs”) with a particular focus on climate change mitigation and climate change adaptation.

The Strategy has a 50% minimum allocation to Green bonds
The Strategy has a 90% minimum allocation to Sustainable investments
The Strategy takes high conviction credit and duration views
Managed by an experienced investment team with an established track record
Established investment process enhanced by integrating sustainability analysis

Actively managed and benchmark unconstrained, which permits conviction in undervalued positions
Aims to provide an attractive total return over the long term through high monthly income generation and capital growth potential
The strategy is actively managed. The strategy will use the ICE Global Corporate Green, Social & Sustainable Bond Index (the “Benchmark”) for performance comparison and risk management purposes.

The investment aim of the Strategy has been built around three core pillars:

Invest sustainably - Invest to support the global transition to a sustainable economy
Generate total return - Selecting investments with attractive risk-adjusted income builds significant total returns over the long term
Generate alpha - Take advantage of idiosyncratic and systematic opportunities in credit and government bond markets

The Strategy allocates a significant proportion of the portfolio to Green bonds (minimum 50%). A key element of the philosophy is active engagement, the team are focused on highlighting the importance of the environmental and social impacts and how companies can look to improve these key performance metrics. The team believes that improving a company’s environmental and social metrics will also have a positive impact on its cost of capital and the team's potential alpha generation.

Alpha generation is an important element of the Strategy’s philosophy. The team will accomplish this through:

- The selection of undervalued corporate bonds using the team's proprietary Credit Adjusted Valuation Scoring system (‘CAVS’) and their ESG Efficient Frontier' screening process. The team will then perform detailed bottom-up credit and ESG analysis, identifying catalysts to generate idiosyncratic returns
- An active duration overlay which employs a dynamic allocation to government bonds to enhance total returns and potentially manage portfolio downside risks. This is a predominantly quantitative process that incorporates analysis of short-term return drivers with portfolio risk management techniques that has been successfully implemented by the team for over a decade

Approach	Long-only
Asset Class	Investment Grade Credit, Government Bonds
Geographic Focus	Global

Craig Veysey, CFA

Lead Portfolio Manager, Man GLG

Francois Kotze, CFA

Portfolio Manager, Man GLG

Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.

UCITS

Alternative investment funds

US 40 ACT

Regional funds

Separate accounts

Advisory mandates

Managed accounts

Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.

View our strategies

One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:

Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.

Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..

Financial Derivatives - The Strategy may invest in financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) typically for hedging purposes. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The use of FDI may multiply the gains or losses.

Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.

Total Return - Whilst the Strategy aims to provide capital growth over 3 years, a positive return is not guaranteed over any time period and capital is in fact at risk.