Search this website. You can use fund codes to locate specific funds

SDG Engagement High Yield Credit commentary: Barclays

The SDG Engagement High Yield Credit Fund focuses on delivering two, co-linear objectives: strong financial performance for investors and positive social and environmental impacts that contribute to the delivery of the Sustainable Development Goals (SDGs). Here we demonstrate how we are engaging with current holding Barclays to generate positive outcomes for both society and investors.

Within the SDG Engagement High Yield Credit Fund, we seek two self-reinforcing objectives: performance and impact. In practice, this means we invest in issuers that have the willingness and ability to effect change that supports their credit profile. This is exemplified by our exposure to Barclays, one of the UK’s market-leading banks, which we have covered since 2004.

The investment case for Barclays is strong. With a strong risk-management framework and a conservative liquidity position, Barclays has also adopted a bondholder-friendly approach to exercising the call options on its debt – something we see as a key differentiating factor. Our analysts also note the bank’s good track record of managing regulatory ratios through volatile earnings periods.

In addition, we think that Barclays is particularly well placed to align its operations with the delivery of the SDGs through:

  • Inclusive financial and lending products;
  • Helping to fund decarbonisation efforts in the corporate sector; and
  • Tackling broad corporate-culture weaknesses.

 To find out more about the potential for Barclays to deliver SDG-aligned impact and our engagement progress to date, read the full engagement commentary.

Risk profile
  • Nothing in this document constitutes a solicitation or offer to any person to buy or sell any related securities or financial instruments.

  • Past performance is not a reliable indicator of future results and targets are not guaranteed.

More Insights

Focusing on the evidence: 360°, Q4 2021
In our latest edition of 360°, Andrew 'Jacko' Jackson and his team of specialist investors consider the areas that have the potential to deliver superior risk-adjusted returns..
Does the end of China's love affair with property spell heartbreak for investors?
Investors will be profoundly impacted by what the Chinese property sector does next
The Meeting Room Webcast: Global Emerging Markets SMID, November 2021
As we navigate the ever-changing landscape of the coronavirus, the Global Emerging Markets team reflect on recent performance, and discuss the outlook for Global Emerging Markets from both a market and portfolio positioning perspective.
EV lover, she’ll take your heart because it’s greener: A lifecycle comparison between electric and combustion-engine cars
Road transport is one of the largest contributors to global warming. Its decarbonisation will therefore have a significant impact in the fight against climate change.
Impact Quarterly Report, Q3 2021
In the latest Impact Quarterly Report, we delve into the theme of Financial Inclusion, as a theme linked to 13 of the 17 UN Sustainable Development Goals (SDGs).
An asset class at a crossroads: reshaping credit through ESG
We outline our credit team’s ESG and engagement integration philosophy, and how the team is working to authentically integrate ESG into every step of its investment process.