fundtruffle

Fund houses team up with The Big Issue to launch impact investing platform

Darius McQuaid, 19/11/2018

A group of fund managers including Aberdeen Standard Investment (ASI) have teamed up with The Big Issue to launch a mobile-first investment platform that offers a range of social and environmental impact funds to retail investors, called The Big Exchange.

The Big Exchange has teamed up with ASI, Columbia Threadneedle, AllianceBernstein and Alquity for the new offering.  Almost £1 million has already been invested in to the fund.

Phase one of this new venture will begin with the Impact Platform also called The Big Funds which will make financial services available to the public via a mobile-first interface.

The platform will be blockchain-powered and offer 30 to 40 social and environmental impact funds, and will be launched within six months.

Campbell Fleming, ASI global head of distribution said: “Change in the way the UK invests is long overdue. Low cost, well-managed impact funds can help people do better with their savings, while doing good for society and the planet without sacrificing financial returns. That’s why we’re launching The Big Exchange.”

Nigel Kershaw OBE, chairman of The Big Exchange and The Big Issue Group, said: “The Big Exchange follows exactly the same principles as The Big Issue and its co-founder Lord John Bird of a hand up, not a hand out. A mission-driven business that is more effective and sustainable because it’s not a charity. It will help millions of people to help each other build a better society. That’s huge.

“Central to The Big Exchange is that investors can understand the positive difference made by their choices. Our unique approach will show investors through clear indicators how funds support the Sustainable Development Goals and align with our commitment to people and the planet.”

Emma Bickerstaffe, former HSBC UK head of strategy has also joined to lead the launch team, tech platform builder FNZ, led by Phil Goffin and specialist marketing agency AML Group, led by Ian Henderson are also involved.

Other companies have joined to assist the project such as consulting firm Fimatix, Trowers & Hamlin, Herbert Smith Freehills, 3D Investing and FNZ's regulated affiliate Rexigon Securities, which will provide execution and custody.

The funds on offer will be set at a price that the firm claims to be the cheapest in the market. While the platform will allow investors to choose which area of social and environmental issues (synched to the UN’s Sustainable Development Goals) they wish to inject money in to.

Big Issue believes that it will be able to attract roughly £3 billion of assets over five years. Funds included will be Alliance Bernstein’s Sustainable Global Thematic fund and Standard Life Aberdeen’s UK Equity Impact – Employment Opportunities fund.

The minimum investment in to the funds is set at £500 and investments will be available for a fee of 20 basis points.

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