Global Fixed Income Investing Based on an Index of Sustainable Companies

19 Pages Posted: 23 Feb 2013

See all articles by Michael Walsh

Michael Walsh

Phoenix Sustainable Group, LLC

Ronald Ryan

Ryan ALM, Inc.; CFA Institute Research Foundation

William Taki

Phoenix Sustainable Group, LLC

James McCarthy

Phoenix Sustainable Group, LLC

Date Written: February 21, 2013

Abstract

This paper reviews an ongoing research and development effort to form a fixed income index portfolio of sustainable companies that generates a benchmark-beating returns and risk profile. A well-performing fixed global income product comprised of debt issued by corporates with measurable emphasis on sustainability would offer investors another tool for capturing value, and directing investment, on the basis of corporate sustainability. The Ryan Phoenix Global 100 Fixed Income Index tracks a portfolio of liquid, investment grade bonds issued by major global corporates selected on the basis of strong performance metrics for sustainability: energy, environment, governance, diversity, safety, innovation and human capital retention. The Ryan Phoenix index has significantly outperformed several industry benchmarks over the last seven years. The challenge now is to complete the R&D process for the index by field-proving it with interested partner institutions. Completing the product development cycle can be achieved by implementing the index in a real portfolio, refining based on experience, and disseminating the results to the global investor and research community.

Keywords: environment, governance

Suggested Citation

Walsh, Michael and Ryan, Ronald and Taki, William and McCarthy, James, Global Fixed Income Investing Based on an Index of Sustainable Companies (February 21, 2013). Available at SSRN: https://ssrn.com/abstract=2221625 or http://dx.doi.org/10.2139/ssrn.2221625

Michael Walsh (Contact Author)

Phoenix Sustainable Group, LLC ( email )

1000 Skokie Blvd, #120 B
Wilmette, IL 60091
United States

Ronald Ryan

Ryan ALM, Inc. ( email )

800 Village Square Crossing
Suite 215
Palm Beach Gardens, FL
United States

CFA Institute Research Foundation ( email )

United States

William Taki

Phoenix Sustainable Group, LLC

1000 Skokie Blvd, #120 B
Wilmette, IL 60091
United States

James McCarthy

Phoenix Sustainable Group, LLC

1000 Skokie Blvd, #120 B
Wilmette, IL 60091
United States

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