Morningstar - Q2 2021 - 6

Contributors

Magazine

Jon Hale

Gabriel Denis

e bond

This issue introduces Sustainability Matters,
a column by Jon Hale, a director on Morningstar's
ESG strategy team. Hale aims to bring clarity
to the discussion of environmental, social, and
governance investing, or sustainable investing. " I'd
like to help investors understand the latest
trends and nuances, " he says, " and simplify the
complexity of sustainable investing. " Hale notes
that some approaches focus on controlling
material ESG risks, while others prioritize investing
in companies that make a positive impact on
the world. In his first installment (Page 15), Hale
explains why green bonds are perfect for
the latter camp. Not every sustainable fixedincome fund puts impact first: There are nuances
here, too, and there aren't enough green
bonds to make them a mainstay. But as issuance
increases, so does interest.

A lot has happened since analyst Gabriel Denis
joined Morningstar Research Services' manager
research fixed-income team in 2018. " At
that point, the talk was that this was the end of
the great bull bond market, " he recalls. " Yet
yields today are at almost unfathomably low levels,
even after a recent rise. " Denis regularly talks
with bond-fund managers who describe the
challenges of investing in this environment, which
prompted him to research the extent of the
problem. In " Low Yields, Low Expectations " (Page
33), he illustrates how the reliable core bond funds
that anchor many portfolios are at an impasse.

For this issue's Spotlight on the challenging
fixed-income market, illustrator e bond envisioned
a familiar landscape and then deconstructed it.
" What do traditional systems offer us, " she
wondered, " and in what new ways can we utilize
them within our current frameworks? " Based
near Oakland, California, bond is a designer of
digital spaces who also works in the tangible
realm. Under the studio name roughdrAftbooks,
she makes one-of-a-kind artists books, printed
pieces, and abstract drawings.

Editor-in-Chief Jerry Kerns
Managing Editor Laura Lallos
Editorial Board Christine Benz, David M. Blanchett, Sarah Bush, Elizabeth
Collins, Lee Davidson, Adam Fleck, Sylvester Flood, Jon Hale, Thomas M.
Idzorek, Ben Johnson, Paul D. Kaplan, Haywood Kelly, Dan Kemp,
Grant Kennaway, Alex Morozov, Daniel Needham, Don Phillips, Jeffrey
Ptak, Hal Ratner, Daniel Rohr, Jeffrey Stafford, Christopher Traulsen
Contributors Karin Anderson, Amy C. Arnott, Holly Black, Gabriel Denis,
Philip Gorham, Supreet Grewal, Ryan Jackson, Benjamin Joseph,
Charles Keenan, Dan Lefkovitz, Neil Macker, Lia Mitchell, Tom Nations,
Zachary Patzik, Emma Rapaport, John Rekenthaler, Adam Sabban,
Ruth Saldanha, Hiroaki Sato, Jelena Sokolova, Aron Szapiro, Ian Tam,
Julie Varga, Chris Weirath
Art Director Alex Skoirchet
Designer Paul Zdon
Illustrator e bond
Photographers Katherine Calnan, Matthew Gilson, Matt Roth
Copy Editors Mary Kate Chambers, Mike Eiler
Publisher Sheila Berleman
Director of Advertising Sales Stuart Roge
Regional Sales Directors Dan Atkinson, Tony Lignelli, Joanna Sawyer
Morningstar, Inc.
CEO Kunal Kapoor
Managing Director, Design David Williams
Chief Marketing Officer Rob Pinkerton
Editor-in-Chief Nicolas Owens
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Morningstar Q2 2021

Morningstar - Q2 2021

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