Union Bancaire Privée (UBP) said it has added a new addition to its equity product range with the launch of a Positive Impact Equity strategy.
Managed by London-based European equity managers Victoria Leggett and Rupert Welchman, the strategy is designed to generate superior long-term returns.
It will invest in a portfolio of 2 to 35 companies with revenue streams that address environmental and societal challenges.
The measurement of non-financial performance alongside financial results, in a long-term approach, will be one of the strategy’s key characteristics, UBP said.
As companies have to meet a measurable impact criteria, UBP has developed its measurement framework in collaboration with the Cambridge Institute for Sustainability Leadership (CISL).
‘Impact investment in listed equity is a compelling and accessible way for the investor to allocate capital wisely, and genuinely ‘move the needle’ in the fight to restore our planet and bring balance to society,’ said Leggett, who is also the head of responsible investment for asset management at UBP.
‘The Positive Impact Equity strategy is comprised of carefully selected, often little-understood companies with exciting business models and strong prospects,’ she added.
In Asia, wide ranging social and environmental challenges are offering substantial potential for impact investments. East and Southeast Asia have recorded some of the fastest growth rates, annual survey by the Global Impact Investing Network showed.
In Southeast Asia, for instance, since 2007, private impact investors have deployed around $904 million in Indonesia, Philippines, and Vietnam, to name a few.
Last month, DBS Bank partnered with Impact Investment Exchange (IIX) to launch the Women’s Livelihood Bond Program, a series of bonds targeting a total of $100 million.
The program aimed to empower one million underserved women, funds enterprises in South and Southeast Asia, focused on financial inclusion, clean energy, and sustainable agriculture.