"Over the last 18 or so months, we have engaged with a lot of water companies. These are largely private, and so the public debt investors are the only ones, effectively, that can drill some of these points home. So, for us, that is a very strong advantage, and to be a debt investor seems to be the only way to influence these sort of companies."

While company engagement is typically thought of as the reserve of equity funds, there is an important role to play for fixed income managers in tackling the sustainability challenges facing the planet. This week, Jock was joined by David Katimbo-Mugwanya, EdenTree's Head of Fixed Income and manager of the Responsible A-Rated EdenTree Responsible and Sustainable Short-Dated Bond fund to discuss what their 'Performance with Principles' ethos means in practice and how they engage with companies. David goes onto to explain how they have been working with water companies to tackle the environmental standards of the UK's rivers, and how they aim to lend to the best in class.

Don't have time to listen to the full episode, jump to your favourite part:

• 01:25 - EdenTree's ethos is 'Performance with Principles', what does this mean in reality?

• 03:00 - For a bond fund manager, do you get to pick and choose which bond issuance you want to be involved in?

• 05:15 - How do you engage with companies?

• 07:55 - How is your portfolio positioned?

• 11:50 - What keeps you up at night?

• 16:35 - An interesting statistic for the week.

This was recorded on Friday 1st March 2024. This podcast is only aimed at professional advisers and regulated firms and should not be passed on to or relied upon by any other persons. It is not intended for retail investors, who should obtain professional or specialist advice before taking, or refraining from, any action on the basis of the podcast, remembering past performance is not an indication of future performance. It is published by, and remains the copyright of, Square Mile Investment Consulting and Research Ltd. Square Mile makes no warranties or representations regarding the accuracy or completeness of the information contained herein. This podcast represents the views and forecasts of SM at the date of issue and may be subject to change without reference or notification to you. Nothing in this podcast shall be deemed to constitute a regulated activity or an invitation or inducement to engage in investment activity and it is not a recommendation to buy or sell any funds or investments that are mentioned during this podcast.