NCRAM has a strong commitment to responsible and sustainable practices in investing client assets entrusted to us. With regard to client investing, we believe that consideration of sustainability is congruent with our Strong Horse investment philosophy. We incorporate Environmental, Social, and Governance (ESG) factors when analyzing an issuer’s sustainability and investment prospects, taking into account whether ESG strengths and risks are priced into market yields and spreads.
NCRAM became a signatory to the United Nations Principles for Responsible Investment (UN PRI) in 2013 and signed on as a supporter of the Task Force on Climate-Related Financial Disclosures (TCFD) in 2021. NCRAM launched our ESG Global High Yield Strategy in 2018 and our Global Sustainable High Yield Strategy in 2021.
ESG considerations are a standard part of our investment process. Portfolio managers and analysts continually evaluate the management of the issuers in our portfolios and the issuers we are considering for investment. As we evaluate the management, we consider whether they act in a sustainable way with regard to the environment and with regard to their employees and other constituents. We also weigh their corporate governance with regard to how they treat shareholders and bondholders. We believe that consideration of sustainability helps us invest in stronger companies and improving credits.
Nomura Corporate Research and Asset Management Inc. is not part of the NAM Group. This website is a general communication. It is being provided for information purposes only, and is subject to change without notice. Nothing herein is intended to constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Any examples used in this material are generic, hypothetical and for illustration purposes only. The views and strategies described may not be suitable for all investors. Investing involves risk.