Focusing on the regions and population cohorts where the need is greatest is the best way to achieve a positive impact from responsible bond investing according to Tammy Tang, lead manager on the CT UK Social Bond fund.
Speaking on an edition of the FTAdvser podcast sponsored by Columbia Threadneedle Investments, Tang said she took a regional and demographic focus to sustainable bond fund investing.
Tang has been lead manager on the CT UK Social Bond fund since last year, when her predecessor Simon Bond retired.
She said: "Our aim is to address unmet needs, and to do that we look through a lens of certain regions and population coghorts. Our aim is to achieve a financial retun and also have a positive impact."
Tang said they tend to look at areas where the need is greatest. with the aim of "making an impact where gaps exist."
Her view is that societies which are more equal deliver more positive outcomes for everyone, and can also dleiver positive financial returns for clients.
Tang also expressed scepticism about whether the "greenium" - or green premium on bonds - still existed.
She said: "I would say the greenium, when we track it and we track it from the lens of coparing the price of bonds that are more general corporate purpose to those that are labelled green or sustainable or social, historically there is a difference but I would label it as de minimis. On average abut one or two basis points in spread or yield terms and often it is not there at all.
"The more important consideration relates to what is the sentiment or market environment of the day that will often define the price.
"To the extend we sit in an environment whereby it is lower volatility - so one that we saw quite some years back when interest rates were near zero - that was when we did see slightly higher greeniums and maybe a slightly greater spread of them."
david.thorpe@ft.com
