Question one: How does engagement in fixed income work in practice?

It’s a myth that engagement in the realm of fixed income is less effective than for equities. Our multi-decade experience of deep engagement with companies issuing debt illustrates this – and we have a solid track record that underlines how effective engagement can be in influencing company behaviour.

Our in-house stewardship team and engagers – including a global engagement team dedicated solely to fixed income – are a critical element of integrating ESG considerations into our investment process. Engagers and credit analysts work closely together; sharing views and opinions; and attending company meetings. This allows us to develop a much better real-time understanding of management’s thinking, culture and processes, as well providing an opportunity to encourage further progress on the path towards sustainability.