THIS IS AN ADVERTISING PROMOTION
Like many game-changing ideas, The Global Sustainability Trust plc hasn’t happened overnight. Arguably, it has been more than 20 years in the making, as its originator and deputy chairman Andrew Dykes explains.
Andrew Dykes first made the connection between environmental sustainability and how market forces can help fund it when, as an economics graduate in the early 1990s, he worked in a national park in Tanzania and saw how the economics of tourism helped to protect wildlife and ecosystems.
This led on to roles in asset management in Edinburgh, incorporating sustainability into charity mandates and working on investment trusts.
Then to Switzerland, where Dykes co-founded a specialist investment management company focusing purely on sustainability.
Launched in 2009, the venture’s sustainable investment approach was probably too early for the mainstream market. But when the United Nations announced its 17 Sustainable Development Goals (SDGs) in September 2015, Dykes saw an opportunity to put into practice his ideas to deliver long-term, large-scale sustainability funding.
“I had already recently approached the UN about how investment trusts could be used to finance low-carbon projects. But when the UN launched its SDGs to address a whole array of global environmental and social challenges, I knew that the long-term, patient capital of investment trusts could help to fund them,” he says.
Private market focus An introduction by Iain Henderson, Head of International Co-operation at the UN Environmental Inquiry, to key people at the UN confirmed its interest in the launch of an investment trust aligned with the SDGs.
Buoyed by this interest, Dykes was able to attract support for his idea from a number of foundations, HNWs and Douglas Armstrong at Dickson Minto W.S., a leading advisor to the investment trust sector. And so the GST coalition was formed.
Together, they proposed a new investment trust that would use its ability to invest in unlisted, private market investments to give retail investors access to sustainability initiatives and projects worldwide - investments that would otherwise only be accessible to large, institutional investors.
A presentation for the project, linked to the World Forum on Natural Capital in Edinburgh, in late 2017 attracted 75 representatives from universities, charitable foundations and wealth managers, further building ‘the coalition of the willing’.
Genuinely new
Keen to make this a truly investor-led proposition, Dykes and Dickson Minto then approached a variety of private wealth managers, pension funds, charities and religious bodies for feedback and were overwhelmed by the response.
“Of the 40+ wealth managers we approached, nearly all of them said ‘Yes - this is something we’ve been looking for, that our clients have been asking for and that we would be interested in investing in,’” says Dykes.
“The key point was this is a fund that could have measurable environmental and social impact but could potentially also deliver strong investor returns*.
“Most of all, it could invest in specialist private market, unlisted assets that wealth managers couldn’t easily access themselves. It was genuinely offering something new.”
A manager with scale
With investors on side, the next step was to select an investment manager via a competitive tender process. The need to combine expertise in investment trusts, sustainability and private markets meant the field of contenders was quickly whittled down.
Ultimately, says Dykes, all these attributes, plus the fact that Aberdeen Standard Investments was ahead of its peers in developing an integrated private markets investment platform, made it the front runner*.
“Choosing a global manager like Aberdeen Standard Investments may provide the on-the-ground access to private market sustainability projects that we need - from microfinance to sustainability-focused private equity funds to infrastructure. But it also means we have the scale to make a real difference. After all, if you’re going to democratise impact investing, you need someone big to help you do it.”
Making a difference
The initial public offering for the trust will be in Q4 2018. Dykes envisages strong ongoing demand from both private wealth managers and retail investors directly. “More and more, we’re hearing that private investors are looking for a return on their money but are also asking ‘What can I invest in that’s sustainable and will make a difference?’
“The big distinction from impact funds that invest in existing listed securities is that this trust is genuinely delivering fresh capital to a diversified portfolio of high-impact private market investment opportunities. In terms of enabling private investors to make a real difference with their investments, that’s what makes the Global Sustainability Trust different.”
*Source: Aberdeen Standard Investments Team, 2018
Important Information
Risk factors you should consider prior to investing:
• The value of investments and the income from them can fall and investors may get back less than the amount invested.
• Past performance is not a guide to future results.
• The Company’s investment portfolio may not achieve the desired positive measurable environmental and/or social impact.
• The Company’s investments are inherently illiquid.
• Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years.
• There is no guarantee that the market price of the Company’s shares will fully reflect their underlying Net Asset Value.
• An investment in the Company is only suitable for investors who are capable of evaluating the merits and risks of such an investment and who have sufficient resources to bear any loss which might result from such an investment.
• The success of the Company will depend, amongst other things, on the Investment Manager’s ability to identify, acquire and realise investments in accordance with the Company’s investment objective and policy. This, in turn, will depend on the ability of the Investment Manager to apply its investment processes in a way which is capable of identifying suitable investments for the Company to invest in.
There can be no assurance that the Investment Manager will be able to do so or that the Company will be able to invest its assets on attractive terms or generate any investment returns for Shareholders or avoid investment losses.
The Company is an alternative investment fund for the purposes of the AIFM Directive and has appointed Aberdeen Fund Managers Limited as its alternative investment fund manager.
Domicile and legal form: The Company - The Global Sustainability Trust plc was incorporated and registered in Scotland on 17 April 2018 as a public company limited by shares under the Companies Act with registered number SC594582.
Typical investor
The Directors believe that the typical investors for whom an investment in the Company is appropriate are private investors and institutional investors investing for capital growth and seeking exposure to a diversified global portfolio, primarily consisting of Private Market Investments, which aims to create positive measurable environmental and social impact.
An investment in the Company is only suitable for persons capable of evaluating the risks and merits of such an investment and who have sufficient resources to bear any loss which may result from the investment. Potential investors should consider with care whether an investment in the Company is suitable for them in the light of their personal circumstances and the financial resources available to them.
Investors may wish to consult an independent financial adviser who specialises in advising on the acquisition of shares and other securities before making an investment.
The AIFM and Investment Manager
Under the terms of the Management Agreement, the Company has appointed Aberdeen Fund Managers Limited as the Company’s alternative investment fund manager for the purposes of the AIFM Directive. The AIFM has delegated portfolio management to Standard Life Investments Limited as Investment Manager.
Other important information:
Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1XL. Registered in Scotland No. 108419.
An investment company should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments.
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
We recommend that you seek financial advice prior to making an investment decision.
For more information, please visit http://www.globalsustainabilitytrust.co.uk/
