Impact bonds provide a financial return as well as a positive impact on the environment or society. The money is ringfenced and can only be used for pre-determined objectives.
In this short podcast George explains how the secondary market in impact bonds is driving performance:
“If you are able to get hold of them, [impact bonds] perform very well in the secondary market because everyone wants them,” says Pendal’s George Bishay.
“They outperform vanilla bonds due to this huge demand.
“It’s a really powerful way to deploy capital. The only real negative is the concept of greenwashing – where an issuer comes to market and talks up their credentials only to fall short from an ESG perspective.
“We buy securities from an issuer that has a very good credit rating. That allows for the secondary market activity.”
George Bishay is a portfolio manager with Pendal’s Bond, Income and Defensive Strategies team.
Led by Vimal Gor, Pendal’s BIDS boutique is one of the most experienced and well-regarded fixed income teams in Australia. In 2020 the team won the Australian Fixed Interest category in the Zenith awards.
The team oversees $22 billion invested across income, composite, pure alpha, global and Australian government strategies with the goal of building Australia’s most defensive line of funds.
Pendal is an independent, global investment management business focused on delivering superior investment returns for our clients through active management.
Find out about
Regnan Credit Impact Trust
This information has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and is current as at November 24, 2021.
PFSL is the responsible entity and issuer of units in the Regnan Credit Impact Trust (Trust) ARSN: 638 304 220 and Pendal Sustainable Australian Fixed Interest Fund (Fund) ARSN: 612 664 730. A product disclosure statement (PDS) is available for the Funds and can be obtained by calling 1300 346 821 or visiting www.pendalgroup.com. The Target Market Determination (TMD) for the Fund and Trust are available at www.pendalgroup.com/ddo. You should obtain and consider the PDS and the TMD before deciding whether to acquire, continue to hold or dispose of units in the Fund.
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This information is for general purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation.
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