Global investment manager Schroders announced the launch of Schroder International Selection Fund (Schroder ISF) Global Equity Impact, a new listed global equity impact fund aimed at investing in companies with solutions and actions addressing the UN Sustainable Development Goals (SDGs).
According to Schroders, the launch of the new fund comes amidst growing demand from clients for public equity-focused impact strategies. Schroders has pursued a series of initiatives to bolster its impact offerings and capabilities over the past several 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 impact-driven public equity range, 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 Article 9 fund under the EU SFDR regulation, will invest in companies across all sectors addressing key themes such as health and wellness, financial inclusion, sustainable infrastructure, and responsible consumption and production, with a focus on the UN SDGs, the 17 categories of goals adopted in 2015 as part of the 2030 Agenda for Sustainable Development, with the aim to protect the planet and improve the quality of life globally. SDG targets include ending poverty and hunger, improving education, and protecting the environment.
According to Schroders, the fund will target 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 Mid-Cap team and European Equity specialist team, and leverages the expertise of BlueOrchard.
The new fund will be jointly managed by Joanna Wald and Paul Griffin.
Wald and Griffin said:
“We identify companies whose technology, scientific expertise or market leadership bring prowess and innovation to address the UN SDGs. These companies operate at scale and in ways that are foundational to impact outcomes yet often underappreciated. We are active, long-term owners who can demonstrate significant contribution through continuous engagement. We measure impact over time and actively engage to enhance that impact. We believe these companies have the potential to offer strong returns to investors in line with their business activities. There is no compromise needed on performance.”