Harbour launches its new Sustainable Impact Fund

Harbour Asset Management has launched a new high-end diversified fund designed to generate investment returns that have a positive impact on people and the planet.

Wednesday, December 1st 2021, 4:59PM

The Harbour Sustainable Impact Fund will be overseen by an expert impact committee, comprised of both senior Harbour staff and independent experts, and is available for investors with at least $100,000 directly with Harbour.

It will also be accessible on InvestNow and the new digital platform Flint Wealth, as well as through financial advisers.

Co-portfolio manager Chris Di Leva says the fund has been put together in response to the increasing demand for responsible investment options.

“Responsible investing has entered the mainstream over the past five years, and now impact is the new frontier.

"Increasingly Kiwis are wanting to invest to make a positive difference to the world, rather than simply avoiding negative impacts."

He says impact investing is a new and evolving area in the New Zealand investment market as Kiwi investors increasingly demand investment options that reflect their values and goals.

“Six months of research has gone into exploring global best practice in measuring impact," Di Leva says.

"We selected the UN Sustainable Development Goals as a key metric for the fund because of their widespread global recognition and the detail they provide in terms of key indicators for each goal."

He says Australasian equities will be actively managed by the Harbour team, investing in companies they expect will generate a strong return and a positive impact.

Bonds and private credit will also be managed by Harbour, including green bonds, sustainability-linked bonds, and bonds of companies they judge to be impact leaders.

For global exposure, the fund will engage the expertise of industry leaders such as global sustainable funds pioneer Mirova and Harbour’s long-term global partner T. Rowe Price.

The fund will also invest in venture capital through partnering with Icehouse Ventures.

“Investors have told us they want to put their capital towards innovative companies that are looking to solve big problems, especially when it comes to clean energy and agriculture," Di Leva says.

"Icehouse has already invested in a number of successful early-stage companies that are making a positive impact on society and have been hugely profitable for investors.

"This fits with our philosophy of providing access to experts which complement our experienced local team.”

Being carbon neutral is another important feature of the fund with any carbon contained in the fund being offset by Harbour through investment in projects which actively prevent carbon release and contribute to multiple UN Sustainable Development Goals.

Tags: Harbour Asset Management Impact investing responsible investing