Banque de Luxembourg Investments and Funds For Good have launched a pair of dual-impact equity funds: FFG European Impact Equities and FFG American Impact Equities. Having collaborated closely for over a decade, the Luxembourg-based BLI and Brussels-based FFG have decided to strengthen their existing partnership, they said.
, CEO of Banque de Luxembourg Investments, on Friday 29 September 2023 that the funds emerged from the company’s desire to offer solid investment solutions that seamlessly integrate sustainability and impact. She remarked that the long-standing collaboration with FFG made them a natural partner for this project. She added, “Our intention was to develop a management methodology that integrates sustainability and impact generation at the heart of portfolios, while adding a more concrete and tangible impact dimension.”
The newly introduced equity funds are classified under Article 9 of the Sustainable Financial Disclosure Regulation, stated the press release. Both BLI and FFG aim to provide investors with dual-impact investment strategies. Investments made by BLI teams are designed to be sustainable, while FFG aims to make a direct and local impact post-investment through their Impact activities.
Nicolas Crochet, co-CEO and co-founder of Funds For Good, stated that half of the company’s annual profits go towards its social projects. FFG was initially backed by BLI in 2011, and Crochet notes that this partnership aims to offer liquid investment solutions with a dual and complementary perspective on impact. He stated, “Despite clear advances in responsible investment practices, many questions remain about the tangibility or additionality of certain investment products. So it was only natural that, by combining our ideas with the teams at BLI, we decided to pool our strengths to create liquid investment solutions that offer investors a dual and complementary view of impact.”
Tom Michels, the manager of the FFG European Impact Equities fund, outlined the investment methodology as an original approach based on the ‘Impact, Quality and Value’ triad. This methodology aims to invest in quality companies contributing directly to one or more of the United Nations’ sustainable development goals. Michels stated that the focus would not be limited to a specific theme but would cover both social and environmental concerns.
BLI is the asset management branch of Banque de Luxembourg, and as of 31 August 2023, it managed assets totalling €14.08bn. The firm has acquired significant experience in international asset allocation across equities, bonds and multi-asset strategies.
Meanwhile, FFG manages €600m in assets and allocates half of its profits to its Impact Initiative. The scheme is geared towards offering financial support and guidance to entrepreneurs, either those who are currently unemployed or those who have a socially responsible project they wish to transform into a business.