As the world struggles to overcome the devastating COVID-19 pandemic, we believe impact companies and issuers that are focused on providing innovative solutions to the world’s biggest challenges may emerge in coming years as differentiated investment opportunities. We believe our public-sector opportunity set will expand on the heels of this crisis, and we have never been more excited to be part of the impact investing community or to support the United Nations Sustainable Development Goals (SDGs).
The past year has been eventful for Wellington Management´s impact investing franchise. Combining the portfolio management teams of Wellington´s two impact investment strategies, focusing on equity and bonds, respectively, has created a synergy that enables us to identify what we see as compelling opportunities across asset classes. Our goal continues to be identifying equity and fixed income investments that meet our standards of materiality, additionality and measurability, and to engage with management teams to ensure the viability of our theory of change — or impact thesis — for each organisation.
Achieving tangible impact
In 2019, Wellington’s Global Impact Fund and Global Impact Bond Fund invested in solutions that improved the lives of billions of people. For example, investments:
- Provided education and job training to more than 1.5 million people worldwide and funded the operation, renovation and construction of schools for more than 850,000 students
- Supplied more than one million affordable housing units
- Generated nearly 1,100 terawatt hours of renewable energy, enough to power almost 90 million homes and avoid 760 million metric tons of CO2 emissions
- Cleaned more than 6.5 billion cubic meters of polluted water
- Provided digital access to nearly 610 million people in developing countries
- Protected more than 504,000 organisations (and millions of their customers) with cybersecurity products
As of 31 December 2019 | The specific securities identified are not representative of all of the securities purchased, sold, or recommended for clients. It should not be assumed that an investment in the securities identified has been or will be profitable. Actual holdings will vary for each client and there is no guarantee that a particular client’s account will hold any or all of the securities listed.
Our impact themes and alignment with UN SDGs
We launched our first impact approach for institutional investors in 2015 with a diversified set of 10 impact themes, which were based on years of research and extensive consultation with internal and external advisors. When the UN SDGs were published, we were pleased to see how well our themes aligned. In 2018, we added our “Safety & Security” theme to reflect the growing importance of cybersecurity and home, road and workplace safety.
Wellington’s 11 impact themes