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

Meeting Room Webcast: US SMID Equity, March 2021
Join the US Equities team for the Federated Hermes Meeting Room: Virtual Portfolio Briefing focused on US SMID Equity.
Weekly Credit Insight
Recovery and inflation expectations are inflicting pain on segments of the market - should you buy the dip?
Tackling decarbonisation in credit portfolios
We believe that it is possible to invest and create value while also working to prevent the unfolding climate crisis.
A new shape for restructuring in the EU?
The EU Directive on preventive restructuring frameworks finally comes into force this summer.
No time like now: why investors are moving on ESG
We take a trip down memory lane and into the future with ESG...
Can palm oil ever be considered sustainable?
With monocropping one of the main causes of deforestation, palm oil production needs to change. Rather than staging a boycott, responsible investors should engage with companies across the supply chain to encourage the adoption of globally recognised certification standards