Columbia Threadneedle's Simon Bond - Social Bond Impact Investing with Investment Grade Bonds & More (#014)

SRI360 | Socially Responsible Investing, ESG, Impact Investing, Sustainable Investing

Simon Bond is Executive Director of Responsible Investment Portfolio Management and until recently, was the portfolio manager of the Threadneedle UK Social Bond Fund and the Threadneedle (Lux) European Social Fund at Columbia Threadneedle Investments, the asset management arm of Ameriprise Financial, which has total assets under management of $593 billion (as of 30 June 2021). With over three and a half decades of experience in the fund management industry, Simon is a recognized specialist in corporate credit.
In this episode, we discuss Simon’s early career, starting as a desk assistant in the investment management department of Hambros Bank under Peter Hill-Wood, and how his enthusiasm and tendency to ask lots of questions led him to work in bonds. We hear how Simon discovered what he calls the soft side of finance, where investing could produce benefits for society. We learn how he conceived and launched the Threadneedle UK Social Bond Fund and the Threadneedle (Lux) European Social Fund, both of which invest in diversified portfolios of fixed income securities, with social impact criteria. Simon explains how his approach to portfolio management includes positive inclusion, evidence-based decision making, and engagement with management. We also talk about how he integrates social impact into everything he does (including his support of premiership football club Tottenham Hotspur!)
Simon is a Fellow of the Chartered Institute for Securities and Investment and holds the Investment Management Certificate and the General Registered Representatives Certificate.
Show notes: https://sri360.com/podcast/simon-bond
About the SRI 360° Podcast: The SRI 360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, Scott Arnell interviews a world-class investor who is an accomplished practitioner from all asset classes. In my interviews, I cover everything from their early personal journeys—and what motivated and attracted them to commit their life energy to SRI—to insights on how they developed and executed their investment strategies and what challenges they face today. Each episode is a chance to go way below the surface with these impressive people and gain additional insights and useful lessons from professional investors.
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Chapter

1. Episode Introduction (00:00:00)

2. Simon’s background and how he became a bond market expert (00:07:06)

3. How Simon’s working class father and “education, education, education” philosophy influenced his outlook (00:15:02)

4. Simon’s role and responsibilities at Columbia Threadneedle (00:18:21)

5. Positive inclusion mindset and philosophy vs negative exclusion philosophy in responsible investing (00:22:50)

6. Simon discusses his three pillars of investing approach: positive inclusion, evidence-based approach, and real engagement (00:25:00)

7. Simon’s process for selecting, buying, and assessing bonds (00:34:00)

8. he Green Bond Principles and their benefits (00:38:30)

9. Benefits of a partnership model and why Simon partnered with the Big Issue (00:42:16)

10. Simon’s three focuses for portfolio construction (00:47:30)

11. Simon discusses the style bias inherent in a social investment fund (00:51:51)

12. Real life examples of investments that meet his fund’s mandate and criteria (00:53:30)

13. Combating greenwashing (01:01:20)

14. Simon makes the case that the social investment market will catch up with the growth seen in the green bond market (01:07:30)