Hello and welcome to the 2024 Impact Report for the Martin Currie Improving Society strategy. The previous publication of the baseline Impact Report at the end of 2023 set out the ethos and aims of the strategy. We are pleased to be able to report to you for the first time the social impact our portfolio companies are creating versus their Key Performance Indicators (KPIs).
It is our hope that this and future Impact Reports will allow you, our investors, to continue to see the evolution of the positive impact our portfolio companies are having on society. The Improving Society strategy was developed to bring to the market our vision of impact investing which we believe can help solve some of the world’s biggest social problems by investing in public equities. It utilises a robust process with impact at its heart.
This allows the Impact Equities Team to identify those companies with innovative products and solutions which are both helping to make the world a better place as well as creating an opportunity for long duration growth and financial returns. This focus on products and services as a driver of impact also allows us to measure the change being created in the real world through company-specific KPIs.
In the coming pages you will get the chance to see how each stock in the portfolio is stacking up against its specific Impact KPIs. And, whilst we know a year is not a long time in impact terms, we are delighted to report to you that 77% of Impact KPIs are being met or exceeded by the companies to which they are assigned.
Another important element of this report is the focus on Stewardship. When we launched the Improving Society strategy, we made a commitment to engage with every company in the portfolio to facilitate improvements in corporate behaviour and to amplify the level of impact being generated. We believe publicly listed companies can deliver social impact at scale and we are delighted to present to you the types and outcomes of engagement work we have been doing over the past year as well as the plan for future progress in this area.
We hope you find the 2024 Impact Report for the Improving Society strategy useful and informative. We believe it is absolutely vital that you, our clients, are clear on the impact being generated by companies in the portfolio today and over time. This report represents the first in what we hope will be a long line of annual updates on the social progress the strategy has helped create in global communities. We are very happy to have you on this journey with us and we continue to look forward to a long and impactful relationship.
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And, whilst we know a year is not a long time in impact terms, we are delighted to report to you that 77% of Impact KPIs are being met or exceeded by the companies to which they are assigned.
Important information
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.
This document may not be distributed to third parties. It is confidential and intended only for the recipient. The recipient may not photocopy, transmit or otherwise share this presentation, or any part of it, with any other person without the express written permission of Martin Currie Investment Management Limited.
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.
Martin Currie has procured any research or analysis contained in this presentation for its own use. It is provided to you only incidentally, and any opinions expressed are subject to change without notice.
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.
Please note the information within this report has been produced internally using unaudited data and has not been independently verified. Whilst every effort has been made to ensure its accuracy, no guarantee can be given.
The information provided should not be considered a recommendation to purchase or sell any particular strategy / fund / security. It should not be assumed that any of the securities discussed here were or will prove to be profitable.
It is not known whether the stocks mentioned will feature in any future portfolios managed by Martin Currie. Any stock examples will represent a small part of a portfolio and are used purely to demonstrate our investment style.
The analysis of Environmental, Social and Governance (ESG) factors forms an important part of the investment process and helps inform investment decisions. The strategy does 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.
- The integration of sustainability risks in the investment decision process may have the effect of excluding profitable investments from the investment universe of the strategy and may also cause the strategy to sell investments that will continue to perform well.