Global investment manager Schroders has announced the launch of the Schroder International Selection Fund (Schroder ISF) Global Equity Impact, a new listed global impact fund that aims to invest in companies with solutions and actions that address the UN Sustainable Development Goals (SDGs). .
According to Schroders, the launch of the new fund comes in a context of growing demand from clients for impact strategies focused on public actions. Schroders has undertaken a number of initiatives to strengthen its impact offerings and capabilities over the past few years, including acquiring a majority stake in impact investment manager BlueOrchard in 2019, and joining the Global Impact Investing Network (GIIN) in 2020. The new fund marks an expansion of its range of impact-oriented public equities, which also includes Schroder ISF Emerging Markets Equity Impact, Schroder ISF US Smaller Companies Impact, Schroder ISF Asian Equity Impact and Schroder ISF European Innovators.
This new fund, classified as an Article 9 fund under the EU SFDR regulation, will invest in companies across sectors that address key themes such as health and wellbeing, financial inclusion, sustainable infrastructure and responsible consumption and production, focusing on the UN SDGs. , the 17 categories of goals adopted in 2015 as part of the 2030 Agenda for Sustainable Development, with the aim of protecting the planet and improving the quality of life globally. SDG goals include ending poverty and hunger, improving education and protecting the environment.
According to Schroders, the fund will aim for the dual outcome of generating a positive impact on society and attractive long-term returns for investors. The fund is a collaboration between Schroders' US small and medium-cap team and European equity specialist team, and leverages BlueOrchard's expertise.
The new fund will be jointly managed by Joanna Wald and Paul Griffin.
Wald and Griffin said:
“We identify companies whose technology, scientific knowledge or market leadership bring courage and innovation to address the UN SDGs. These companies operate at scale and in ways that are critical to impacting results, yet often underestimated. We are active, long-term owners who can demonstrate a significant contribution through ongoing involvement. We measure impact over time and actively engage to increase that impact. We believe these companies have the potential to offer strong returns to investors, in line with their commercial activities. There is no compromise required in performance.”
