Martin Currie has launched its first social impact fund.
The company, a specialist investment manager of Franklin Templeton, has launched the FTGF Martin Currie Improving Society Fund.
The fund will invest in a portfolio of 20-35 companies around the world which aim to improve wellbeing, inclusion and support a transition towards a sustainable economy.
It will be managed by a team including Lauran Halpin, head of impact equities, and John Gilmore, impact equities and stewardship, sustainability and impact specialist.
The fund will initially be distributed in the UK, France, Italy, Luxembourg, the Netherlands and Sweden.
Halpin said societal development objectives have been historically “grossly underfunded” and abandoned in some countries to focus on more important issues like climate change and Covid-19.
She added: “There is a significant opportunity to create impact at scale by investing in companies that are contributing to pressing societal needs like providing access to clean drinking water, healthcare and education as well as financing job re-skilling for working in a green economy.”
“This new fund invests in companies innovating to address societal needs with long-term growth potential, which in turn encourages cash flow and returns and reinvestment into addressing other societal issues.”
The portfolio management team will measure the social impact companies create through company-specific key performance indicators, and engagement objectives, as well as measuring the contributions of the underlying companies against seven socially-focussed social development goals.
Mel Bucher, head of global distribution for Martin Currie, said: “This exciting new launch brings to market our first Article 9 fund and provides clients with an innovative social impact fund.
“We envisage the portfolio will include underlying holdings that are not owned in conventional global equity funds and will therefore complement existing allocations.”
sally.hickey@ft.com
