The Impact Investment Trust is to be listed on the London Stock Exchange, with a target of raising $150m (£119m) and the aim of benefiting developing countries while giving a good return for investors.
The trust invests in small to medium enterprises, and is designed to give them the capital required to make a positive impact on the lives of people living in the world’s poorest countries and regions.
Investments will be made across a number of ‘high impact’ sectors where clear needs for goods and services are identified. These include in education, including day-care and pre-school, healthcare, agriculture and access to financial services.
Obviam AG, which has managed the Swiss government’s development finance portfolio since 1998, has been appointed as investment adviser. Its aim is to deliver solid financial returns or 8 per cent while providing measurable development impact.
Subscription to Impact Investment Trust is due to close on 5 July, with trading expected to commence on 10 July. The investment is available via several intermediaries including platform AJ Bell and stockbrokers Redmayne Bentley. Investec will act as broker and sponsor.
Thomas Venon, partner at impact investment specialist East Eighteen, said: “This trust offers the chance for normal investors to get the stable returns that typify investment trusts, while making a very positive impact on the lives of people living in some of the poorest countries. In this was it is one step on from ethical investing.
“‘Impact investments’ are not new, as they have been around for decades. However, until now they have been limited to high net worth investors who can meet the large minimum investment sum, and are content to wait for the returns.”
The Impact Investment Trust will also be listed on the Social Stock Exchange section of NEX.
