The vehicle, called the UK Equity Impact – Employment Opportunities fund, aims to generate a financial return over the long-term by investing in “impact” companies which promote and implement good employment opportunities and practices like paying above average wages.
Other impact criteria includes companies that are located in deprived areas of the UK and businesses which offer training opportunities and employ young people. Most of the companies the fund invests in will have 50% of their employees located in the UK.
Aberdeen Standard’s Lesley Duncan will oversee the fund, which will be entirely actively managed to ensure the companies it invests in are upholding their employment impact commitments.
Big Issue Invest has lined up social advisory and data analytics firm, The Good Economy Partnership, to help deliver the social impact assessment framework being applied across the fund’s investment universe.
While the fund concentrates primarily on employment opportunities, Duncan said she will be mindful of investing in companies “whose activities, products and services may not be deemed to be aligned to, or are incongruous with, the other United Nations Sustainable Development Goals”.
“Good employment is fundamental to all aspects of personal and social wellbeing,” said Duncan. “The fund offers investors a clearly defined means of investing in companies demonstrating best practice within human capital management, while seeking to deliver a competitive financial return over the longer term.”
A percentage of the fund’s management fee will go toward The Big Issue Group to be invested into other finance social enterprises and charities that tackle social problems, health and well-being and financial inclusion.
