The Global Core Sustainability Strategy, which will hold 100 to 150 stocks, has been launched after a two-year period of product incubation. It is built on the grounds that responsible investing and long-term financial success go hand in hand, the firm said in a statement. Companies that tackle environmental and social issues can be expected to grow steadily, manage risk more effectively, and build stronger relationships with stakeholders, thereby supporting the underlying investment case.

The firm also believes that the new Global Health & Wellbeing Strategy, covered by Article 8 under the SFDR, presents an attractive long-term investment opportunity, underpinned by multiple tailwinds, such as an ageing population which compounds the demand for healthcare services. KBIGI highlighted that by investing across the spectrum of medical, safety and wellness services – spanning three segments and nine sub-segments – the strategy adopts a more diversified approach than its healthcare peers, with a social impact focus.

Benchmarked to the MSCI World Healthcare Index, the firm believes that the strategy contributes significant societal and economic value, but investors have often questioned managers’ ability to deliver alpha focusing on the social aspect of ESG. However, KBIGI said its proprietary research shows that companies with high social scores have in certain periods outperformed those with high environmental and/or governance scores – with a healthy culture, greater dynamism and higher energy levels.

“The responsible investing landscape continues to evolve, with the industry characterised today not only by growth, but by a clear divergence in ambition, execution, and conviction”, said KBIGI CEO, Geoff Blake (pictured). “We are working against a complex geopolitical backdrop, some of our peers leaving the market over the last two years, some reining back on their commitment, others changing direction completely. This has of course been a difficult period for the relative performance of most A9 strategies, for two main reasons, namely the concentration of performance in equity markets from US Mega Tech stocks – a number of which align poorly with the United Nations Sustainability Development Goals (SDGs) total client assets across wealth and investment management and the political and regulatory pushback to responsible investing, especially in the US.”

“This has caused a shift in investor sentiment, but responsible investing is a core component of our investment approach here at KBI Global Investors and our conviction remains absolute, so whilst ours may seem a contrarian stance to some, we view current conditions as aligned with our long-term investment approach, our dialogue with investors underpinning our decision to launch,” Blake added.

See more about the firm's other sustainable strategies – the KBIGI Global Resource Solutions Strategy, focused on water, food and clean energy – here.