Impact Fixed Income

Top Reasons for Choosing Addenda Capital to Manage your Impact Fixed Income Investments

• We are deeply committed to impact and sustainable investing, a shared philosophy with our parent company – The Co-operators.
• Our dedicated Sustainable Investing Team deepens our insight and sourcing ability.
• We have one of the largest fixed income teams in Canada, with various skills and backgrounds.

We believe that:

• The world is fraught with environmental and social challenges. Some of these challenges represent pockets of investment opportunities and can be unraveled by investing in business models or government work responding to these growing and necessary needs.
• Investors can benefit from a complementary fixed income portfolio, spanning a diverse range of securities including corporate bonds, government bonds, preferred shares, commercial mortgages, and private debt.
• Impact outputs or outcomes must be intentional, sustainable and quantifiable.

Our investment approach for Impact Fixed Income involves in-depth credit analysis and risk assessment combined with a disciplined impact investment evaluation process

• Extensive research across 5 broad themes (Climate Change, Health and Wellness, Education, Community Development, Water).
• We focus on issuers or investments with sustainable capacity to deliver a positive social and/or environmental impact alongside competitive returns.
• A disciplined bottom-up credit analysis balanced by top-down impact investment themes for determining the investable universe results in the identification of securities with attractive valuations and positive impact.
• Our portfolio construction process involves diversification by term, credit quality, issuer, and impact focus area. We apply proprietary risk management tools to monitor overall portfolio risk, liquidity, and credit quality.
• Impact metrics are essential and can be measured.