Chelsea Financial Services, Fairstone, and Lyndhurst Fund Management are a among list of global groups that have signed up to the Alquity 40-40 campaign to support communities in the developing world hit by the covid-19 crisis, ESG Clarity can reveal.
Last month, investment manager Alquity called on its asset management peers to join its 40-40 Campaign which was launched in response to the coronavirus pandemic with the aim of delivering social support to 40,000 people in emerging markets that are less well-equipped to deal the devastating impact of covid-19.
Chelsea Financial Services, Fairstone, Lyndhurst Fund Management, IPP, Bonhote Private Bank and Gibbs Denly Investment Management (GDIM) have all signed up to be campaign partners.
Darius McDermott, managing director of Chelsea Financial Services, commented: “Alquity has always had believed in giving back to the communities in the countries in which it invests.
“We are delighted to have been asked to partner with Alquity in this campaign. From now until the end of this year, 40% of their annual management charge from investments into the funds by our clients will be donated to the cause.”
In addition to the management fee donations, the Alquity Transforming Lives Foundation has already committed an initial $40,000 to kick start the 40-40 Campaign and is working with its charity partners to identify specific programmes that can assist at this time of crisis.
Alquity said those in emerging markets experience a disproportionate impact from covid-19 as due to cramped living conditions they are more likely to catch the virus, they are more likely to have chronic health conditions and therefore are more vulnerable to the virus, they are less able to access healthcare in poorer countries and the financial impact of quarantines on incomes are more profound.
Geoff Newman, director at Lyndhurst FM, commented: “When I heard about the Alquity 40-40 campaign it took me back to the early 1980s when I spent time working in West Africa and witnessing the disparity in wealth between the haves and have nots first hand. While it is some 40 years since then the growing pains of the developing world continue and the thought of how quickly covid-19 could spread across communities spurred us into action. Lyndhurst Financial Management has been supporting our local community for years and now are delighted to support Alquity in the 40-40 campaign.”
Valentin Girard, portfolio manager at Swiss private bank Bonhote, also said: “We are thrilled to be part of the campaign. In these challenging times, we totally support Alquity’s initiative to donate more to the ones that need it the most.”
Benjamin Benson, investment manager at GDIM, added: “Alquity have set their stall out to take a leading role in impact investing. They are demonstrating that the investment industry can go beyond asset allocation, and that philanthropy makes a tangible difference via the Transforming Lives initiative. The 40-40 Campaign is greatly needed in the current crisis and a programme GDIM fully support. The emerging world feels the impacts of covid-19 more acutely than developed markets, and increased support is vital to those economies pulling through with the rest of the world.”
Reflecting on why the 40-40 was launched, Suresh Mistry, co-founder and sales director at Alquity, told ESG Clarity: “As part of the investment management industry, I asked myself what can we do to help in this time of crisis. What can we do that will make a difference in people’s lives? As responsible investors, we have a responsibility to take that action.
“We are good at telling companies how to reduce their negative impact on the planet and how to treat people, but what are we doing as an industry? We need to turn that ESG lens back on us.
He added: “The covid-19 pandemic should act as a watershed moment for investment managers to review their business models and see if they are fit for the post-covid world. The huge bail outs planned by governments across the world will lead to a new social contract for businesses and the investment industry will not be excluded from this. As the world focuses on key workers, the doctors, nurses, delivery drivers, it will not be long before it asks what key role investment managers played during this time. How they answer will have a huge bearing on the future of responsible investment.”