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This is a marketing communication. Please refer to the Fund Prospectus and KIID/KID and / or offering documents before making any final investment decisions. Please refer to the risks section at the bottom of this page.
Impact bond analysis: an important tool in investors' portfolios
In this new economic era, we believe that evaluating issuers through an impact lens can unearth unique insights and support strong security selection.
Why invest?
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Why fixed income impact investing?
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Why Wellington?
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The Fund’s role in your client’s portfolio
Why fixed income impact investing?
Attractive return potential
In our view, the performance of impact investments stands to be supported by structural tailwinds as policymakers and investors look to re-orientate capital flows towards a more sustainable future.
Diversification
Impact issuers with differentiated business models tend to be underrepresented in market indices and have the potential to enhance portfolio diversification.
Tracking your capital
Investors can access issuers and specific projects aligned with a broad range of environmental and social impact themes. Fixed income markets lend themselves to tracking invested capital and impact reporting over time.
Why Wellington?
High quality, liquid and diversified
A global, multi-sector public markets solution targeting outperformance of a core fixed income benchmark, the Bloomberg Global Aggregate Index (USD Hedged). Marries top-down portfolio management, with bottom-up credit, impact and ESG research.
High bar for impact
Proprietary universe of issuers and securities meeting a high bar for impact and aligned with environmental and/or social themes – bottom-up analysis across all issuers.
Impact monitoring, measurement and reporting
We provide impact reporting at both the fund level and the issuer level, allowing investors to understand how their capital has contributed to positive environmental and social outcomes.
The Fund’s role in your client’s portfolio
A core fixed income allocation that can offer liquidity, diversification and quality.
The fund in 60 seconds
The Wellington Global Impact Bond Fund seeks to deliver long-term total returns in excess of the Bloomberg Global Aggregate Index (USD Hedged) through active management. The Fund invests primarily in debt issued by companies and organisations, with the belief they are addressing specific environmental and social challenges in a differentiated way through their core products, services and projects. The Fund seeks to improve access to, and the quality of, basic life essentials, reduce inequality and mitigate the effects of climate change.
Investment examples
Kreditanstalt für Wiederaufbau (KfW)
A German development bank, which aims to promote sustainable economic, social and environmental development in Germany and worldwide.
Unédic ASSEO
France’s unemployment insurance agency, which helps re-integrate unemployed people back into the workforce by providing financial support and job training programs.
other fixed income funds
Wellington Global High Yield Bond Fund
Wellington Global Credit ESG Fund
Consider the risks
Investors should consider the risks that may impact their capital, before investing. The value of your investment may fluctuate from the time of the original investment. Please refer to the risks section enclosed. A decision to invest should take account of all the characteristics and objectives described in the Fund offering documents. Please refer to the sustainability related disclosures for information on the commitments of the portfolio: www.wellington.com/en/legal/sfdr.
Investment risks
BELOW INVESTMENT GRADE: Lower rated or unrated securities may have a significantly greater risk of default than investment grade securities, can be more volatile, less liquid, and involve higher transaction costs. | CAPITAL: Investment markets are subject to economic, regulatory, market sentiment and political risks. All investors should consider the risks that may impact their capital, before investing. The value of your investment may become worth more or less than at the time of the original investment. The Fund may experience a high volatility from time to time. | CONCENTRATION: Concentration of investments within securities, sectors or industries, or geographical regions may impact performance. | CREDIT: The value of a bond may decline, or the issuer/guarantor may fail to meet payment obligations. Typically lower-rated bonds carry a greater degree of credit risk than higher-rated bonds. | CURRENCY: The value of the Fund may be affected by changes in currency exchange rates. Unhedged currency risk may subject the Fund to significant volatility. | EMERGING MARKETS: Emerging markets may be subject to custodial and political risks, and volatility. Investment in foreign currency entails exchange risks. | HEDGING: Any hedging strategy using derivatives may not achieve a perfect hedge. | INTEREST RATES: The value of bonds tends to decline as interest rates rise. The change in value is greater for longer term than shorter term bonds. | LEVERAGE: The use of leverage can provide more market exposure than the money paid or deposited when the transaction is entered into. Losses may therefore exceed the original amount invested. | SUSTAINABILITY: A Sustainability Risk can be defined as an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.
PLEASE REFER TO THE FUND PROSPECTUS AND KIID/KID FOR A FULL LIST OF RISK FACTORS AND PRE-INVESTMENT DISCLOSURES.