Skip to Content

Dunham Long/Short Credit Fund Class C DCAIX Sustainability

| Medalist Rating as of | See Dunham Investment Hub

Sustainability Analysis

Author Image

Sustainability Summary

Dunham Long/ Short Credit Fund may not appeal to sustainability-conscious investors.

The ESG risk of Dunham Long/Short Credit Fund's holdings is comparable to its peers in the Fixed Income Miscellaneous category, thus earning an average Morningstar Sustainability Rating of 3 globes. Funds in the same category rated 4 or 5 globes tend to hold securities less exposed to ESG risk. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change, biodiversity, human capital, as well as bribery and corruption, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.

Dunham Long/Short Credit Fund has an asset-weighted Carbon Risk Score of 8.4, indicating that its companies have low exposure to carbon-related risks. These are risks associated with the transition to a low-carbon economy such as increased regulation, changing consumer preferences, technological advancements, and stranded assets.

One potential issue for a sustainability-focused investor is that Dunham Long/Short Credit Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes. Currently, the fund has 13.6% involvement in fossil fuels, surpassing 8.5% for the average peer in its category. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas. The fund has extremely high exposure (20.86%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that have a negative impact on stakeholders or the environment, which create some degree of financial risk for the company. Severe and high controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, they can damage the reputation of both companies themselves and their shareholders.

ESG Commitment Level Asset Manager