Martin Gilbert-backed emerging market boutique Alquity is making its first foray into global equities with the launch of the Global Impact Fund.
The fund, which launched on 28 January, will invest in companies committed to producing high quality products and services that have a positive sustainability, societal and environmental impact.
It will be managed by global head of quantitative strategies Marnie Aragon-Uy.
The fund’s screening process has a particular focus how companies contribute to the UN Sustainable Development Goals and decarbonisation.
It will use Alquity’s 3-D investment model with a focus on delivering financial performance, ESG credentials and capital for grassroots impact through its Transforming Lives Foundation; Alquity injects 10% of its revenues into the foundation, which has had a positive effect on some 60,000 people by granting more than $2m in the regions where the company invests.
Preferential terms are offered to founder investors until 31 March.
Alquity chief executive Brad Crombie said: “Our funds have always been responsible by design, construction and outcomes. The launching of the Global Impact Fund marks a step-change in our approach. We believe it will deliver the value created by the increasing convergence of ESG and impact data. Our investment team has laid the foundations for high quality ESG in emerging markets; now we are making use of our wider skillsets to take this approach global.”
Aragon-Uy added: “We are constructing a highly targeted portfolio that maximises exposure to companies with the most favourable sustainability metrics when it comes to both ESG and impact. By using a data-led approach, portfolio risks and impact metrics are constantly monitored to ensure they remain within our targeted risk and impact profiles.
“This transparency means our clients will know that the fund is having a positive impact, investing in the cream of the ESG crop, delivering against the SDGs while also targeting superior risk-adjusted returns.”
Last month, Alquity announced it is targeting a 10-fold increase in revenues and $3bn in assets under management over the next five years after entering a strategic partnership with East Capital Group, and receiving financial backing from co-founder of Aberdeen Asset Management Martin Gilbert (pictured) as well as the founders of seed investment group Investible.
In a statement, Alquity said it will cooperate with Luxembourg-based East Capital Group business development and distribution in some European and overseas markets to build both synergies and scale. The companies will also work together on strengthening sustainable investment, impact practices and foster ESG excellence through the creation of a joint ESG and Impact Council.
Over five years, the plan is for Alquity to see revenue growth of 10x and increase AUM to $3bn – it currently stands at around £130m.
East Capital Group has acquired a 10% stake in Alquity.