Aiming to generate market-beating long-term returns by investing in solutions to the world’s environmental and societal problems
Investing with impact
Launched in October 2020, Regnan Global Equity Impact Solutions is a high conviction, diversified, global multi-cap portfolio with very low turnover and a strong emphasis on driving impact through engagement. Our experienced four-person impact investment team aims to generate long-term outperformance by investing in mission-driven companies that provide solutions for the growing unmet sustainability needs of society and the environment.
Regnan’s impact investment team uses the 17 United Nations Sustainable Development Goals (SDGs) and their 169 underlying targets as an investment lens.
17 global goals: the United Nations Sustainable Development Goals
In 2015, world leaders agreed to 17 global goals, known as the UN Sustainable Development Goals (or SDGs).
Click on each SDG below to find out more.
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Five years on the United Nations is calling for significant new investment to address the SDGs.
In 2019 the UN called for “a decade of ambitious action” to deliver the goals by 2030. There’s an estimated gap of $US2.5 trillion to $US3 trillion per year to achieve the SDGs in developing countries.
But the potential dividends of that investment are significant.
Achieving the SDGs could open up $US12 trillion of market opportunities and create 380 million new jobs, the UN believes. Action on climate change could result in US$26 trillion worth of savings by 2030.
A “fundamental shift in the international financial system is needed to align global economic policies and financial systems with the 2030 agenda”, UN Secretary-General António Guterres said in 2019.
“National policy frameworks are key to reducing risks, creating an enabling business environment, incentivising investment in public goals and aligning financial systems with long-term sustainable development.”
A growing set of solutions
Regnan has identified more than 150 solutions and an investment universe of some 2,200 listed companies. These numbers are growing as our new global equities impact investment team benefits from the deep experience of our Engagement, Advisory and Research experts. From this universe we choose companies with the best potential for share price growth based on their innovative and effective SDG solutions.
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Our eight current portfolio themes
Health & Wellbeing
Improved life expectancy and quality
Transforming the energy system to power a low-carbon economy
Resource efficiency, reusability and recyclability
Low carbon transportation
Sustainable food supply and productive farmlands
Access to quality education
Financial Services for underserved populations
reservation of and access to water
We aim to achieve positive impact by:
Keeping companies on mission
We engage with management to influence strategy and try to keep them focused on business areas that contribute to solutions.
Engaging to reduce negative impacts
We talk to the management of portfolio companies about issues such as the environmental footprint of their supply chains and working conditions in their suppliers’ factories. By reducing negative impact, we aim to magnify total net positive impact.
We invest in companies we believe should outperform the market in the long term. Assuming we retain our initial conviction, sometimes this means accepting underperformance in the short term, because the management prizes long-term potential over the next quarter’s earnings. Our support, as a long-term investor, increases the company’s ability to stay impactful.