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Responsible Investing

Sustainability encompasses the protection of the natural world and intergenerational equity, tangible concepts fundamental to our economic wellbeing and successful long-term investment. We work with clients to help meet their sustainability needs, while applying the core principles of sustainable investment.

We aim to create positive change and influence on ESG factors. From an investment perspective sustainable companies can be potentially more robust and resilient. We believe consideration of ESG has the biggest impact when fully integrated into the investment process. Our investment professionals seek to actively engage with companies on sustainability risks and opportunities to understand how ESG factors drive risk and return.

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Our Beliefs

  • Responsible investment is firmly aligned with our fiduciary duty as a manager of corporate credit
  • Systematic integration of important environmental, social and governance (ESG) factors provides valuable insight into drivers of business risk and could contribute to better long-term risk-adjusted returns
  • Constructive dialogue or engagement with companies in our investment universe helps us to actively identify, monitor and manage ESG and financial risks
  • It is important to tailor specific responsible investment approaches to the different types of corporate credit in which we invest
  • Working in partnership with investors enables us to offer innovative solutions to address both financial and non-financial investment objectives

“Sustainability, the protection of nature, respect for others and responsible development are fundamental to our economic wellbeing and successful long-term investment. We should work closely with our clients to help them meet their goals of promoting good environmental standards, sound governance and fair social policies. These are beliefs that lie at the heart of what we do.”

George Muzinich, Founder and Executive Chairman

Key Milestones & Recent Commitments

2024
  • Muzinich’s PRI Assessment Scores for 2023 (published in 2024) are as follows:
    > Policy, Governance & Strategy: 5 stars, 99%
    > Fixed Income (Corporate): 5 stars, 95%
    > Fixed Income (Securitised): 4/5 stars, 71%
    > Fixed Income (Private Debt): 5 stars, 95%
    > Confidence building measures: 5 stars, 100%

A detailed explanation of the PRI’s assessment methodology is available by clicking here

Muzinich’s PRI Summary Scorecard is available by clicking here

Muzinich’s Public PRI Transparency Report is available by clicking here

Muzinich’s PRI Assessment Report is available by clicking here

2023
  • Launched Muzinich's proprietary ESG scoring methodology for public debt issuers
  • Appointed as a Partner of the Bright Tide Regenerative Farming Accelerator Programme
2022
  • Muzinich’s PRI Assessment Scores for 2021 (published in 2022) are as follows:
    > Investment & Stewardship Policy – 4 stars
    > Direct – Fixed Income – Corporate – 4 stars
    > Direct – Fixed Income – Private Debt – 4 stars

A detailed explanation of the PRI’s assessment methodology is available by clicking here

2021
  • Majority of Muzinich UCITS Funds classified as Article 8 under EU Sustainable Finance Disclosure Regulation*
  • Joined Net Zero Asset Managers Initiative
2020
  • Supported Climate Action 100+ initiative participating in five corporate engagements on climate change
  • Supported the Task Force on Climate-related Financial Disclosures (TCFD) initiative
  • Joined Investment Company Institute (ICI) ESG Task Force
  • Joined the Taskforce for Scaling Voluntary Carbon Markets
  • PRI assessment scores (2020): Strategy & Governance: A+ Fixed Income (Financials & Corporates): A, A; A detailed explanation of the PRI’s assessment methodology is available by clicking here

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2019
  • Implemented carbon emissions reporting on a selection of portfolios; Muzinich & Co. Limited Co-Founded the European Leveraged Finance Association (ELFA) and joined ELFA’s ESG Working Group
2011
  • Launched ESG ‘best-in-class’** strategy; Partnered with Sustainalytics
2010
  • Signed the United Nations-supported Principles for Responsible Investment (PRI)
2000
  • Onboarded first accounts with socially responsible exclusions

*UCITS funds are based in the European Union. Units have not and will not be registered in the United States under any applicable legislation. Units are not available for offer or sale in any state in the United States, or to persons (including companies, partnerships, trusts or other entities) who are “US Persons” (as defined in Rule 902 of Regulation S under the Securities Act), nor may Units be owned or otherwise held by such persons.

** ESG best-in-class is defined as the explicit inclusion of certain securities in an investment universe based on certain predetermined ESG metrics of the issuing entity and/or their related products and services.

Muzinich views and opinions subject to change without notice and not to be taken as or construed as investment advice or an offer. The Principles for Responsible Investment (PRI) Assessment is based on information provided by PRI signatories, like Muzinich & Co., Inc. If you have any questions regarding the assessment, please contact Muzinich. The PRI Assessments are not validated by a third party and are not indicative of being compared to other advisers. Signatories report on their responsible investment activities by responding to asset-specific modules in the Reporting Framework. Each module houses a variety of indicators that address specific topics of responsible investment. Signatories’ answers are then assessed, and results are compiled into an Assessment Report. The Assessment Report includes indicator, section, and module scores. As of 2021, PRI includes individual module scores but no overall organisation score. Module scores have moved from alphabetical grading (A+ to E) in 2020 to a new numerical grading system ranging from 1 to 5 making scores of previous years not comparable to the new reporting cycle.  A module score of 90% or higher gets awarded five stars, 65-90% is four, 40-65% three, 25-40% two and those that get 25% or lower get assigned one star. Each module contains core and additional indicators, however only core indicators are assessed according to the new Reporting Framework. They are initially scored with a 0-100 point system and then are weighted with a multiplier (high x2, moderate x1.5 or low x1) reflecting the relative importance of each indicator. The Investment and Stewardship Policy module has the following sections, Responsible Investment Policy and Governance, Stewardship, Climate Change, Sustainability Outcomes, Transparency and Confidence-Building Measures. Direct - Fixed Income Corporate and Direct - Fixed Income Private Debt Assessment Score has Pre-Investment phase, Post-Investment Phase, Reporting/Disclosure and Engagement. For more information on the PRI Assessment see https://www.unpri.org/signatories/reporting-and-assessment.