Reducing bond portfolio's exposure to greenhouse emissions

Case studies

How we helped our client reduce their bond portfolio’s exposure to greenhouse gases by 35%

The background

Having already addressed climate risk in their equity portfolio, the natural next step for our client was to better-protect their bond investments from climate change risks.

Our solution

We started by assessing the capabilities of 15 of our highly rated investment managers, subsequently narrowed down to a shortlist of four. As part of this process, we reviewed example portfolios, the proposed investment approaches and back tested data.

The outcome

The client's new portfolio is well diversified, spread across a large number of sectors and issuers. The yield was left unchanged, whilst the carbon exposure within the portfolio was reduced by
around 35%. We also negotiated a material fee reduction for our client as part of the switch – a “win win”.

How we can help

We help central banks design and implement investment strategies to get the most out of their reserves in a risk-controlled manner. 

We help charities and endowments construct investment strategies and pick the right investment funds to both meet their financial objectives and be aligned with their missions.

We help our clients to maintain a competitive edge by improving their investment strategies, generating extra returns in a risk-controlled way.

The LCP Wealth Drawdown tool is designed to help advisers explore the impact of charges and other factors on your pension in drawdown.

Our investment team works with trustees of DB and DC schemes to set bespoke investment strategies and select fund managers. Using our market-leading technology, we help you navigate your journey by providing you with clear, actionable insights which enable you to make better short and long-term investment decisions.  

Setting a good investment strategy and picking the right funds is fundamental for wealth managers and advisers to be able to deliver better outcomes for their clients. Our role is to advise clients on investment strategy and fund manager selection bringing institutional discipline to the retail market.

Every sovereign wealth fund has its own unique circumstances and challenges. As an independent consultancy, we’re not linked to any asset manager and we don’t sell investment products.

Our investment thinking

Our investment thinking

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