Emerging market boutique Alquity is making its first foray into global equities with the launch of the Global Impact Fund.
As outlined by manager and global head of quantitative strategies Marnie Aragon-Uy in the above video interview, the fund will investing in companies that are committed to producing high quality products and services that have a positive sustainability, societal and environmental impact.
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There is a particular focus how these companies contribute to the UN Sustainable Development Goals and decarbonisation within the screening process.
It will use Alquity’s 3-D investment model focus on delivering financial performance, ESG credentials and catalytic capital for grassroots impact through its Transforming Lives Foundation; Alquity generates additional impact by injecting 10% of its revenues into the Foundation, which has positively impacted over 60,000 people by granting more than $2m in the regions where the company invests.
The Global Impact Fund was launched on 28 January and preferential terms are offered to founder investors until 31 March.
Brad Crombie, CEO of Alquity, said: “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.”
Manager of the fund Aragon-Uy added: “We are constructing a highly targeted portfolio that maximizes 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.”
At the start of this year, Alquity announced it is targeting a 10-fold increase in revenues and $3bn in assets under management over the next five years after entering a strategic partnership with East Capital Group, and receiving financial backing from co-founder of Aberdeen Asset Management Martin Gilbert as well as the founders of Investible.
In a statement, Alquity said it will cooperate with Luxembourg-based East Capital Group business development and distribution in some European and overseas markets to build both synergies and scale. The companies will companies will also work together on strengthening sustainable investment, impact practices and foster ESG excellence through the creation of a joint ESG and Impact Council.
Over five years, the plan is for Alquity to see revenue growth of 10x and increase AUM to $3bn – it currently stands at around £130m.
East Capital Group has acquired a 10% stake in Alquity.