Sustainable Mandate Products | Lord Abbett

 

Sustainable Mandate Products

At Lord Abbett, we develop new products at the intersection of investor needs and our firm’s core competencies. As a firm committed to global corporate citizenship, we also view product development in the context of our ESG investing strategy. In 2020, we launched our first thematic, sustainable investment strategy that is available to investors through the Lord Abbett Climate Focused Bond Fund. The strategy leverages our 50-year history of managing multi sector fixed income portfolios by investing in issuers and securities that we believe are having a positive impact on the environment, as well as those that may benefit from structural shifts, as a result of increasing emphasis on the global climate.

The strategy focuses on five major themes:

Clean Energy: Our clean energy investments are typically concentrated in the renewable power industry, which includes wind, solar, and hydro power. We will consider a wide range of renewable energy companies globally, including utilities, power generation, and companies that develop technology for the renewable sector.

Energy Efficiency: Issuers in this space include energy metering and semiconductor companies that provide solutions aimed at reducing the energy usage of appliances and vehicles.

Water: Our exposure in this sector is largely focused on infrastructure management and filtration solutions. We believe water management solutions will be crucial to address climate and environmental issues in the coming years.

Low Carbon Transportation: Our investments in this segment of the market include electric and hydrogen-powered vehicles as well as low carbon mass transportation.

Other Environmental: Our strategy invests in recycling, waste management, and circular economy-related issuers. Furthermore, we will invest in Green Bonds, which are issued specifically to fund projects such as electric vehicle charging stations, pollution reduction programs, and renewable energy.

Climate Focused Bond

Strategy Goal

Seeks to deliver total return by investing in the securities of issuers we believe have, or will have, a positive impact on the climate.

Our ESG Journey: Looking Ahead

We are fully committed to our approach toward ESG investing. Our intent is to invest sustainably, manage risk, and create long-term value for our clients by authentically integrating ESG considerations across our investment strategies. We take seriously our fiduciary responsibility in helping our clients meet their investment objectives, and we believe sustainability can have a tangible impact on an investment’s risk profile and its ability to generate returns over the long term. We evaluate the potential impact of ESG risks on enterprise value, and we expect that ESG factors will lead to alpha opportunities, as we believe that companies that provide solutions to some of the largest and most pressing ESG issues have the potential to offer higher risk-adjusted returns. Therefore, consideration of environmental, social, and governance factors plays a key role in our investment analysis across all portfolios and investment strategies. As we continue to be guided by our mission, we expect our approach to evolve over time as new data and technologies become available to us as investors.

US Financial Advisors

We help advisors, plan sponsors, and committees meet the needs of clients.


 

US Institutions and Consultants

We offer a range of Institutional investment strategies—each supported by a dedicated service team committed to delivering an exceptional client experience.

Global Strategies for non-US Clients

We offer a range of products that provide non-U.S. resident investors and non-U.S. institutions with access to select Lord Abbett investment strategies.