Introducing the new Lallic Partners ESG Fund
Author: Eugene Guo | Editor: Nichola Monroe | Published April 29th, 2021
Introduction:
As the world around us becomes increasingly concerned with not only profitability, but corporate social responsibilities, Lallic Partners is embracing this trend and offering a new financial product to catch up with this demand — our very own ESG fund (Environmental, Social, Governance). Through this article, as the current team leader for Lallic’s ESG fund program, I will be introducing Lallic Partners’ own ESG Fund through presenting our ESG investment philosophy, acquainting you with our analyst team, and addressing our products future availability.
Investment Philosophy and Strategy:
The philosophy which lies central to the founding of the Lallic Partners ESG fund is to bring profitability while creating a social impact. As modern age investors embracing the new CSR trends, we do not believe in a contradiction between social impact and profitability. We believe as more capital is being poured into the ESG sector globally (currently $30 trillion), a surge in the market value of socially responsible companies is likely and so our investments can both provide high profitability while maintaining social responsibility. Studies have also shown that companies with better governance, such as racial diversity and sexual diversity in leadership positions, have historically performed better. We are confident our ESG valuations align with our goal of profitability.
The fundamental investment strategy of our ESG fund consists of a combination of negative screening and positive screening:
As an ESG fund that aims to uphold social responsibility: we use negative screening to prevent investing in companies in the tobacco, oil, firearms, and adult entertainment industries. While many of our competitors, such as Black Rock, use what is considered the “Best In Class” approach to investing in “the most sustainable oil company,” we completely screen out investing in these industries.
On top of screening out these companies we consider unfit for our fund philosophy, we also use positive screening to select companies that can meet our “profitability with social impact” goal to the greatest extent.
To do so, our team of analysts analyzes companies on the criteria of environmental impact, social impact, governance impact, profitability, and growth opportunity. By examining companies based on these criteria, our analysts can develop a Lallic ESG score to evaluate the companies (Article on Lallic ESG Score is on its way). Our management team then decides how much capital to allocate to each company by looking at these scores. This simple graph below demonstrates our three-step process:
Team:
The Lallic Partners analyst team working on the Lallic Partners ESG fund consists of 10 high school and university students with passion and determination in the market. The management group of this fund has had over 3+ years of experience investing in the market and 1+ years of experience managing investment funds. Leadership positions in Lallic Partners are also all certified with CFI certifications for our excellence in the sector.
For more information on our analyst team and corporate leadership, please go to:
About Us > Leadership on the Lallic Partners official website.
Product Availability:
The Lallic Partners ESG fund is currently under a period of incubation. We will be experimenting with our ESG approach with our corporate capital in this period. Our incubation period so far has seen success, and if progress continues in this trend, we may consider launching this financial product for public investments.
Final Note:
As a company, we are extremely excited to embrace this new philosophy of ESG investments. We truly believe in our goals of "zero-emissions" and "social impact" and we hope you can be as well. More information will come on ESG investments and updates will come in future articles and so we hope you could subscribe to Lallic Partner's social media accounts (@lallicpartners) and for any questions, comments, or concerns on our ESG fund, please email @eugene.guo1@outlook.com.