Corporate Bonds

Our approach deliberately breaks with convention in global credit investing by combining:

• Hybrid research model: Portfolio managers also act as analysts, ensuring faster decision-making and richer credit insights.
• Macro neutrality: Duration, FX, and other macro factors are aligned with benchmark, making alpha purely credit-driven.
• High-quality, stable alpha: Historically top quartile rank on rolling excess returns, with exceptionally low tracking error.
• Low correlation to peers: Stable alpha offers strong diversification benefits in multi-manager portfolios.

This combination makes Jyske Capital’s Corporate Bonds strategy a complementary building block for institutional fixed income allocations.

At Jyske Capital, ESG issues are systematically integrated into the investment decision process for each corporate bond issuer through a proprietary data-driven framework. Analysis of ESG issues are embedded – or integrated - in every investment decision which preserve our disciplined, return-focused approach.

Portfolio managers systematically assess ESG issues alongside financial credit metrics, balancing return potential with sustainability risks. Our structured Multi-Factor Model screens solely on financial criteria to ensure objectivity. ESG issues are on the other hand deeply integrated into the qualitative research stage. This dual approach provides a comprehensive view of each issuer, considering:

• Climate risks and CO₂ intensity per issuer or sector
• Regulatory alignment and controversies
• Strategic investments, environmental commitments, and adaptation to future trends
• Potential stranded asset risks or governance failures

We tailor implementation to institutional client needs - from standard sustainable investment options aligned with EU taxonomy and the Paris Agreement, to fully bespoke solutions such as CO₂ reduction pathways or targeted sector exclusions. This flexibility ensures alignment with both global norms and specific investor mandates.

ESG issues can influence portfolio construction in both directions:

• Exclusion if regulatory breaches, unethical practices, or failure to adapt create unacceptable risk
• Inclusion if ESG factors support stronger competitiveness, profitability, or debt-servicing ability

We do not believe that integrating ESG inherently leads to underperformance. Restrictions such as fossil fuel exclusions may increase tracking error, but we mitigate this through diversified issuer selection and robust risk management. Our experience - supported by industry analytics - shows that a careful balancing of ESG issues can enhance the risk/return profile while supporting sustainability objectives. Learn more