INSIGHTS FROM CFA SOCIETY SINGAPORE ·
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Actively managed credit strategies can meet impact goals, alpha targets

EVEN as the inclusion of sustainability targets in investment portfolios grows in popularity, the challenge of balancing this approach continues to perplex investors.

But a Financial Analysts Journal study, Bonds with Benefits: Impact Investing in Corporate Debt, may offer encouragement. It finds that sustainability-oriented investors can meet their goals with corporate debt strategies, and that profit-oriented factor investors can achieve a portfolio with a certain sustainability level at a low cost.

I spoke with Desislava Vladimirova, who co-authored the study with Jieyan Fang-Klingler, for insights on the authors’ findings and to produce an “In Practice” summary of the study, which can...

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