Trust aims for attractive financial returns alongside measurable positive environmental and social impact
A new investment trust that not only aims to deliver a financial return, but also create a better world.
Until now, most of the funds investing for social and environmental impact (‘impact investing’) have been the exclusive preserve of big institutional investors, such as pension funds and sovereign wealth funds.
But now Aberdeen Standard Investments (ASI), one of the world’s top ten managers of private market assets and a leader in environmental, social and governance (ESG) investing, has come up with a novel approach to opening up the market in companies with a sustainable method to doing business.
By democratising sustainability investment, ASI is giving those with a rising awareness of global warming, where their clothes are produced, what’s in our food and the plastic polluting our seas, the opportunity to invest in companies that produce innovative solutions.
“Those who are caring more about crucial social and environmental issues, such as Millennials, can now put their savings to work on proven solutions, see their savings grow and, perhaps most importantly, gauge the impact of their investments,” said Andrew Dykes, founder of the GST.
Targeting a net total return of 6-8 per cent per annum, ASI is launching the Global Sustainability Trust (GST), which will manage a globally diversified portfolio investing across private equity, infrastructure, real estate, natural resources and private credit that offers investors the opportunity to connect to impact investments and help deliver the United Nations’ Sustainable Development Goals (SDGs).
It will do this by investing in companies across eight impact pillars: circular economy; sustainable energy; food and agriculture; water and sanitation; health and social care; financial inclusion; sustainable real estate and infrastructure; and education and employment.
With a deadline to invest of 1 pm Tuesday 11th December, GST will be managed by ASI, which has one of the largest and most diversified private markets teams and considerable sustainable and impact investment expertise with over 400 private market.
Robert Elliott, Chairman designate of the GST, said: “The launch of the GST gives investors a unique opportunity to access private market investments which will seek to deliver measurable positive environmental and social impact. Importantly the GST will also target attractive financial returns over the longer term by taking advantage of ASI’s considerable private markets experience.”
Impact investing does not mean sacrificing potential returns. Adopting an impacting investing strategy involves recognising that the so called ‘non-financial factors’ addressed by ESG analysis will ultimately impact economic outcomes. Impact investing sets out to benefit our climate, society and investors as a whole.