Standard Life Investments' Global Equity Impact Fund
Standard Life Investments has launched its first impact product, the Global Equity Impact Fund (the Fund), using the 17 United Nation’s Sustainable Development Goals (SDGs) as a framework to develop its impact process and analysis.
The Fund is structured using five principles:
• To support the delivery of measurable, positive environmental and social impact while seeking to generate strong financial returns
• A bottom-up, company-specific investment approach
• Rigorous peer review of investment ideas at every stage in the investment process
• A forward-looking, long-term approach
• Active company engagement
The Fund will have a high-conviction portfolio of 35-60 stocks and, according to Standard Life Investments, each company must intentionally direct its resources towards making a positive environmental or social contribution, must actively implement this strategy in its operations and the impact must be measurable.
Commenting on the launch, Euan Stirling, global head of stewardship and ESG Investment at Aberdeen Standard Investments said: “Impact investing is not just about rewarding those already making a difference, but about shifting the might of the capital market to change the world for the better...Through the Global Equity Impact Fund we aim to have a positive social and environmental impact, while still delivering an above-market financial return for our clients."
Sarah Norris, who will be co-managing the Fund with Dominic Byrne, added: “Asset owners are looking to embrace impact investing but lack appropriate investment solutions. The UN’s SDGs provide a common language for impact solutions that help unlock impact investing for mainstream investors. Active management is an essential component of successful impact investing. Engagement with management is necessary, both for impact analysis and to encourage better behaviours and disclosures.”