October 26, 2018 – Patrick Drum, senior analyst and fixed income portfolio manager at Saturna Capital, will moderate a panel discussion at the 29th Annual SRI Conference in Colorado Springs, Colorado, “the premier annual gathering of sustainability professionals.” The session, entitled “Responsible Fixed Income: Emerging Trends & Approaches,” takes place on Saturday, November 3, and will promote discussion of ESG integration into fixed income investments. Panelists will “share their frameworks for the application of environmental, social, and governance (ESG) metrics in their investment analysis.”
“I’m looking forward to moderating the fixed income panel, catching up with friends, and making new ones,” said Drum.
Patrick T. Drum MBA, CFA®, CFP®, manages the Saturna Sustainable Bond Fund and Amana Participation Fund. He joined Saturna Capital in October 2014. He is a former adjunct professor of finance for the Sustainable MBA Program at the Bainbridge Graduate Institute (BGI) currently known as Presidio Graduate School. Mr. Drum holds a BA in economics from Western Washington University and an MBA from Seattle University Albers School of Business. He is a Chartered Financial Analyst Charterholder and a Certified Financial Planner®.
He is a former Chair of the United Nation’s Principles for Investment (UNPRI) Fixed Income Outreach Subcommittee and a current member of the UNPRI's Bondholder Engagement Working Group (BEWG), an advisory committee working to elevate important ESG considerations and best practices among issuers and investors.
The Saturna Sustainable Bond Fund limits the securities it purchases to those consistent with sustainable principles. This limits opportunities and may affect performance. The Amana Participation Fund limits the securities it purchases to those consistent with Islamic principles. This limits opportunities and may affect performance.
While the Participation Fund does not invest in conventional bonds, risks similar to those of conventional nondiversified fixed-income funds apply. These include: diversification and concentration risk, liquidity risk, interest rate risk, credit risk, and high-yield risk. The Participation Fund also includes risks specific to investments in Islamic fixed-income instruments. The structural complexity of sukuk, along with the weak infrastructure of the sukuk market, increases risk. Compared to rights of conventional bondholders, holders of sukuk may have limited ability to pursue legal recourse to enforce the terms of the sukuk or to restructure the sukuk in order to seek recovery of principal. Sukuk are also subject to the risk that some Islamic scholars may deem certain sukuk as not meeting Islamic investment principles subsequent to the sukuk being issued.