Impact investing boutique set to launch pair of SRI funds

Impact investing boutique set to launch pair of SRI funds

Luxembourg-headquartered impact investing firm Funds For Good is set to launch a European equity strategy whose mandate has been granted to Acadian Asset Management, InvestmentEurope can reveal.

A social responsible investment layer will be added to the fund. The Funds For Good version of the strategy will issue 20% less CO2 emissions than its benchmark and will put aside stocks of companies that are the least respecting human rights.

Also, in October, Funds For Good will launch a new Sicav that will be the SRI version of the BL Global Flexible fund, launched in June 2005 and managed by Guy Wagner, chief investment officer and managing director at Banque de Luxembourg Investments (BLI).

Funds For Good manages Sicavs in which mandates are granted to external asset managers. All funds selected are SRI-compliant or SRI versions of funds that do not usually apply a sustainable strategy.

The impact investing boutique reverses between 10% and half of its revenues into its own foundation. Thereafter the foundation’s assets are lent to unemployed individuals eligible to obtain a micro-credit but who do not offer sufficient guarantee to be granted one.

Speaking to InvestmentEurope, Nicolas Crochet (pictured left), managing partner at Funds For Good, says: “Funds For Good was born of two observations. First, too many individuals across Europe were unemployed and a number of them among this population wanted to start an entrepreneurial business. However, loans are refused to some of these people by banks or micro-finance institutions because they do not provide enough guarantees to be granted a loan. Secondly, retail investors account for 10% of the whole SRI-compliant assets and that for various reasons. Individuals want SRI to be concrete and to generate a tangible impact.”

Some 80 individuals have been supported by Funds For Good to date in the setup of their own business and the figure is expected to double over the coming months.