The specialist asset manager, Impax Asset Management, has launched the Global Social Leaders strategy offering exposure to companies with what it considers ‘strong’ coporate culture.
The strategy uses a quantitative framework to identify strong corporate culture, characterised as low employee turnover, gender-diverse leadership and inclusive business practices. All stocks must pass through Impax’s 10-Step analysis where in-depth ESG research is undertaken to ensure it is eligible for the portfolio.
Impax intends to generate long-term capital growth by investing in businesses with strong corporate cultures that respond to long-term social trends. This includes aging populations, urbanisation, rising income in emerging markets and the impact of transformational technology on financial markets.
The Global Social Leaders strategy is co-managed by portfolio manager Amber Fairbanks and deputy chief investment officer (CIO) Charles French. Currently, it is available in Europe and the US, where the MSCI All Country World Index will be used for comparative purposes.
Fairbanks added: “Although the market typically ignores culture for more easily understood metrics, strong culture can drive earnings growth through innovation, increased productivity, better relationships with suppliers and customers, and higher employee retention.
“Impax is exceptionally well positioned to launch this strategy given our history in quantifying behaviour to support alpha generation, and our focus on long-term secular trends underestimated by the market.”
