Our investment philosophy

Sophisticated, differentiated fixed income strategies, with a focus on capital preservation.

Fortlake is a unique proposition, bringing institutional capabilities via our global investment partners into a retail and wholesale offering, whilst also building on strong strategic partnerships with our institutional clients. We form strategic partnerships with many of our larger clients and deliver end-to-end investment solutions for a range of complex requirements.

Responsible investing

Fortlake is committed to responsible investment; Environmental, Social and Governance (ESG) are a standard consideration as part of our investment process. Fortlake is a signatory to the PRI. Fortlake believes that ESG related issues play a critical role in the outlook for overall credit quality. We regularly review ESG related issues in relation to each individual issuer and update the outlook and its implications for credit quality. ESG is an integrated element of the credit assessment framework for non-ESG related mandates. ESG is considered within a sliding scale and its implications for creditworthiness. Using a set of factors, the approach considers how ESG ties into the potential for upgrade or downgrade and general credit events. A comprehensive ESG assessment process is in place and followed as part of the credit approval process.

Each individual issuer has an ESG score rating. The ESG factor is one factor in the credit assessment framework. Fortlake seeks to understand how ESG risks can manifest over time and lead to poor credit outcomes. The ESG scores are internally generated and benchmarked. Risks relating to ESG need to be vigorously monitored as ESG risks pose one of the biggest risks to business sustainability. Therefore, to the extent that ESG issues negatively affect portfolio performance, the manager will be penalised accordingly via a reduction in asset values. Consequently, ESG related issues pose a direct business risk to the manager and commensurately align risks for investors with the management company.

For more information on our ESG philosophy and process please refer to the Fortlake ESG Policy.