Advancing fairness of social opportunity and narrowing the equality gap can help empower individuals and deliver greater levels of human equity. However, over recent years, we have observed a structural increase in inequality and a widening gap between the goals and delivery of key societal development objectives.
In addressing these issues, the private sector will have a large part to play both as involved corporate citizens and in providing products that facilitate improvements in equality of opportunity and outcome. Companies with products that truly make a difference in people’s lives have the opportunity to make use of long-term profit pools generated by true, ongoing societal need. Those that take their responsibility to society seriously and endeavour to treat employees, customers, and the community with respect and dignity may also find they have a competitive advantage over those who do not.
Martin Currie’s socially focused impact strategy aims to positively address the problem of human inequity while delivering longterm capital growth. We do this by investing and engaging to improve fair treatment, access, opportunity, and advancement for all people.
Our Improving Society strategy can help deliver this by both supporting those companies delivering the most meaningful impact, and actively engaging with them to accelerate the delivery of these ambitions. We invest on a long-term, global basis in 20-35 publicly listed companies whose products or services, (i) improve wellbeing, (ii) improve inclusion, and (iii) support a just transition. Firms providing solutions to facilitate improvements in human equity can meaningfully narrow the equality gap and make a real, measurable difference to society.
Impact investing centres on the intentional commitment of capital. Investing to generate a measurable, beneficial social or environmental impact, alongside a financial return is the ultimate aim.
The strategy has a unique objective and the key aims of this innovative product are to:
Combining impact with financial performance:
Our core belief is that impact and financial performance are interrelated. Companies that generate positive impacts in the world can benefit from increased growth opportunities and more accessible financing by offering solutions that strengthen their competitive advantage.
Make a measurable difference:
We identify company specific impact Key Performance Indicators (KPIs) and engagement objectives, track progress and report against these for all companies in the portfolio.
Generate positive impacts:
We invest in companies that positively address the problem of human inequity, meaningfully narrow the equality gap, and make a measurable difference in the world. We are committed to investing and engaging to improve fair treatment, access, opportunity, and advancement for all people, accelerating real world impact.
We invest to positively contribute to the narrowing of the equality gap and aid in the improvement of social opportunity. We do this by investing in companies whose products or services positively impact one of three key socially focussed pillars:
Supporting a Just Transition:
We focus on the human side of the green transition, making sure that people are not left behind in focus as the economy shifts in response to the green transition and the physical effects of climate change on communities becomes more significant. This includes managing the social impact of climate change through reskilling workers and improving resilience and quality of life in communities.
This is about giving everyone the tools and resources needed to make the most of their opportunities – education, access to finance, and access to resources. This has a focus on improving outcomes for marginalised communities and countries where there are access challenges.
People have a right to a healthy and safe life. We invest in companies positively impacting human health and wellbeing. Not just medical treatments but also preventative medicine and basic human needs such as access to safe and clean water – we think of this as what is needed to get people to starting line.
The link between the investment opportunity to generate alpha and the social impact, is encapsulated in the following diagram:
Our research coverage focuses on seven key Sustainable Development Goals (SDGs) that we see as being most closely aligned to our objective of positive societal impact.
Analytical responsibility is split between team members. By concentrating on SDGs, we are focused on the impact delivered rather than being restricted by traditional industry analysis that is less relevant to our purpose. Our research looks for areas of the market that have the greatest opportunity to generate positive impact.
Impact investing centres on the intentional commitment of capital. Investing to generate a measurable, beneficial social or environmental impact, alongside a financial return is the ultimate aim. We view things through a different lens; adapting traditional methods to put impact first so that we lead with this as opposed to sectors, geographies or styles that define most conventional strategies.
This information is issued and approved by Martin Currie Investment Management Limited (‘MCIM’), authorised and regulated by the Financial Conduct Authority. It does not constitute investment advice. Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested.
The information contained in this document has been compiled with considerable care to ensure its accuracy. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Martin Currie has procured any research or analysis contained in this document for its own use. It is provided to you only incidentally and any opinions expressed are subject to change without notice.
The document does not form the basis of, nor should it be relied upon in connection with, any subsequent contract or agreement. It does not constitute, and may not be used for the purpose of, an offer or invitation to subscribe for or otherwise acquire shares in any of the products mentioned.
Past performance is not a guide to future returns.
The distribution of specific products is restricted in certain jurisdictions, investors should be aware of these restrictions before requesting further specific information.
The views expressed are opinions of the portfolio managers as of the date of this document and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice.
The analysis of Environmental, Social and Governance (ESG) factors forms an important part of the investment process and helps inform investment decisions. The strategy/ies do not necessarily target particular sustainability outcomes.
Risk warnings – Investors should also be aware of the following risk factors which may be applicable to the strategy shown in this document.
- Investing in foreign markets introduces a risk where adverse movements in currency exchange rates could result in a decrease in the value of your investment.
- This strategy may hold a limited number of investments. If one of these investments falls in value this can have a greater impact on the strategy’s value than if it held a larger number of investments.
- Smaller companies may be riskier and their shares may be less liquid than larger companies, meaning that their share price may be more volatile.
- Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. Accordingly, investment in emerging markets is generally characterised by higher levels of risk than investment in fully developed markets.
- The strategy may invest in derivatives Index futures and FX forwards to obtain, increase or reduce exposure to underlying assets. The use of derivatives may result in greater fluctuations of returns due to the value of the derivative not moving in line with the underlying asset. Certain types of derivatives can be difficult to purchase or sell in certain market conditions.
For wholesale investors in Australia:
This material is provided on the basis that you are a wholesale client within the definition of ASIC Class Order 03/1099. MCIM is authorised and regulated by the FCA under UK laws, which differ from Australian laws.
For professional investors in Canada.
This material is intended for residents in, or incorporated in, Canada and are a Permitted Client for the purposes of MI 31-103. The information on this section of the website is not intended for use by any other person, including members of the public.
Martin Currie Inc, incorporated in New York with its registered office at 280 Park Avenue, New York, NY 10017 and having a UK branch registered in Scotland (no SF000300), Head office, 5 Morrison Street, 2nd floor, Edinburgh, EH3 8BH, Tel: +44 (0) 131 229 5252 Fax: +44 (0) 131 222 2532 www.martincurrie.com, operates under the International Adviser Exemption with the Ontario Securities Commission (‘OSC’) and is therefore currently not required to be registered as a portfolio manager for the purposes of MI 31-103. Martin Currie Inc. is also authorised by the UK Financial Conduct Authority.
For the avoidance of doubt, nothing excludes, limits or restricts our obligations to you under the UK Financial Services and Market Act 2000, National Instruments or any other applicable law or regulation.
The opinions and views in this website do not take into account your individual circumstances, objectives, or needs and are not intended to be recommendations of particular financial instruments or strategies to you.
This website does not identify all the risks (direct or indirect) or other considerations which might be material to you when entering any financial transaction. You should consult with your professional advisers before undertaking any investment activity. The information provided on this website should not be treated as advice or a recommendation to buy or sell any particular security or other investment. The information on this website has not been reviewed by any competent regulatory authority.
For professional investors:
In the People’s Republic of China:
This document does not constitute a public offer of the strategy, whether by sale or subscription, in the People’s Republic of China (the “PRC”). These strategies are not being offered or sold directly or indirectly in the PRC to or for the benefit of, legal or natural persons of the PRC.
Further, no legal or natural persons of the PRC may directly or indirectly purchase any of the strategy or any beneficial interest therein without obtaining all prior PRC’s governmental approvals that are required, whether statutorily or otherwise. Persons who come into possession of this document are required by the issuer and its representatives to observe these restrictions.
In Hong Kong:
The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
In South Korea:
This document is for information purposes only. It is prepared and presented to provide an introduction to the business of MCIM and its related companies (collectively known as ‘Martin Currie’). This document does not constitute an offer to sell or a solicitation of any offer to invest in any security, fund or other vehicle managed or advised by Martin Currie.
None of the security(ies), fund(s) or vehicle(s) managed by or advised by Martin Currie are registered in South Korea under the Financial Investment Services and Capital Markets Act of Korea and accordingly, none of these instruments nor any interest therein may be offered, sold or delivered, or offered or sold to any person for re-offering or resale, directly or indirectly, in South Korea or to any resident of South Korea except pursuant to applicable laws and regulations of South Korea.
Martin Currie is not registered with or regulated by any regulatory authorities in South Korea.