INVESTMENT PHILOSOPHY

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LGBT Diversity is the “Final Frontier” of corporate diversity. The LGBT Diversity Fund is a Socially Responsible Investment (SRI) Equity Fund which invests in companies screened from an LGBT diversity perspective. The Fund will target investment in those companies that maintain higher standards of corporate governance and that seek to support LGBT diversity and the benefits it can create amongst its workforce and in its business dealings, both B2B and B2C, as well as increasingly in the context of bidding for public sector procurement contracts. At the core of the Fund is a belief and central investment thesis that truly inclusive companies will gradually outperform their peers.

  • Companies which embrace diversity are likely to perform better than those that do not, due to increased employee loyalty and satisfaction
  • Companies embracing LGBT diversity benefit from strong LGBT supportive brand recognition and support from the LGBT consumer, whereas those lacking in LGBT diversity are more likely to be ‘blacklisted’, with little or no support from LGBT consumers or ‘mainstream’ consumers with an increasing inclination towards values based consumption patterns
  • Vast potential of the LGBT market with increasing population and spending power
  • The LGBT community is a fast growing and more open sector, with the LGBT consumer becoming increasingly supportive of brands that are seen to be LGBT friendly
  • Opportunities for investors, as the LGBT Diversity Fund allows investors to access this investment case, while supporting companies with sound LGBT Diversity policies and implementation

The LGBT Diversity Fund is seeking to achieve market-plus returns, by targeting stocks likely to benefit from enhanced performance from its employee base and LGBT consumer support. Both LGBT Diversity and Socially Responsible Investing are at the core of the Fund’s every move:

  • Institutions or individuals investing with an LGBT SRI mandate or conscience can invest with a fund that has SRI at its heart
  • All potential investments are first screened from an LGBT SRI Diversity perspective and then also evaluated according to standard fundamentals and technical criteria
  • The LGBT Diversity Fund can support and consequently lead to greater LGBT Diversity within corporations as a result of:
  • Greater awareness driving companies to embrace diversity
  • Investment pressure on companies for diversity
  • Potential shareholder activism
  • Within most companies, LGBT Diversity is the final hurdle in achieving effective corporate diversity and inclusion. Consequently, the Fund Manager believes the LGBT Diversity Fund is not only a means of benefitting from the financial opportunity and potential of strong returns – virtually untapped thus far – but also as an effective way of supporting the LGBT sector and efforts to secure greater freedoms and genuine inclusion for the LGBT community globally.