Alquity launches first impact fund
Alquity is launching its first Global Impact Fund – a next generation product which is both global in scope and re-enforces the bridge the company has developed linking listed equities and impact.
The fund’s innovative approach harnesses the depth of companies’ environmental, social and governance (ESG) metrics, as well as their contribution to the Sustainable Development Goals (SDGs). The portfolio prioritises companies from around the world which are committed to producing high quality products and services that have a positive sustainability, societal and environmental impact. There is a particular focus on decarbonisation within the screening process, with the increasing global impetus towards net zero.
For the last 10 years Alquity’s funds have been at the forefront of investing in listed companies with high quality ESG in emerging markets. Now Alquity is combining its established experience in driving ESG in some of the most challenging markets, with its proprietary approach using quantitative, data mining tools. The use of data science will also be increasingly important in meeting the SDGs.
This is the next phase of the company’s continuing approach to its 3-D investment model of delivering financial performance, high quality portfolio ESG and catalytic capital for grassroots impact through its Transforming Lives Foundation. This is Alquity’s virtuous circle that is essential to building strong, inclusive economies.
Brad Crombie, CEO of Alquity, says: “Our funds have always been responsible by design, construction and outcomes. The launching of the Global Impact Fund marks a step-change in our approach. We believe it will deliver the value created by the increasing convergence of ESG and impact data. Our investment team has laid the foundations for high quality ESG in emerging markets; now we are making use of our wider skillsets to take this approach global.”
The fund is led by Marnie Aragon-Uy, Global Head of Quantitative Strategies. Marnie’s career spans 25 years, of which more than 15 were spent at Aberdeen Standard Investments, where she was the Global Head of Quantitative Analytics and a member of the senior team that oversaw the management of more than USD100 billion in client assets.
Aragon-Uy says: “We are constructing a highly targeted portfolio that maximises exposure to companies with the most favourable sustainability metrics when it comes to both ESG and impact. By using a data-led approach, portfolio risks and impact metrics are constantly monitored to ensure they remain within our targeted risk and impact profiles. This transparency means our clients will know that the fund is having a positive impact, investing in the cream of the ESG crop, delivering against the SDGs while also targeting superior risk-adjusted returns.”
The Global Impact Fund launched with initial seed investment on 28 January. A soft opening allows the fund to be offered on preferential terms for founder investors during the initial launch period to 31 March.
As part of its 3-D investment approach, Alquity generates additional impact by injecting 10% of its revenues into its Transforming Lives Foundation, which has positively impacted over 60,000 people by granting more than USD2 million in the regions where the company invests. These funds provide a bridge between the formal and informal economy, lifting up the poorest by creating decent work and economic growth (SDG 8).