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Cambridge Associates Works to Spur Creation of First Environmental, Social and Governance-Focused Emerging Markets Equity Fund for U.S. Institutional Investors
The Fetzer Institute, Meyer Memorial Trust and a West Coast Community Foundation Collaborate With Cambridge Associates to Demonstrate Desire for ESG-Focused Emerging Markets Equity Vehicle
| Source: Cambridge Associates
BOSTON, MA--(Marketwire - September 15, 2009) - Cambridge Associates LLC, provider of
independent investment advice and research to institutional investors and
private clients, is helping several institutions prompt the development of
an Environmental, Social and Governance-focused (ESG-focused) emerging
markets fund for U.S. institutional investors.
"There are currently no ESG-focused emerging markets commingled vehicles
available to U.S. institutional investors -- largely because of a
chicken-and-egg situation. Managers with a platform to do this kind of fund
perceive a lack of interest on the part of U.S.-based institutional
investors, but the reality is that institutions haven't spoken up because
they've yet to see a viable vehicle," said Kevin Stephenson, Director of
the Mission-Related Investing Group at Cambridge Associates.
"We're working with institutions to bridge this gap by corralling their
interest. We will then help them conduct a search for a qualified manager
willing to work with them on the specifics of an ESG-focused, emerging
markets vehicle," he added.
Cambridge Associates' Mission-Related Investing Group is working on the
project with The Fetzer Institute, Meyer Memorial Trust, a prominent West
Coast community foundation, and others. The firm welcomes participation by
other institutions with a commitment to mission-related investing, whether
or not they are Cambridge Associates clients.
The group is likely to select a large organization with both a strong
emerging markets track record and an established ESG/socially
responsible/sustainability platform to manage the fund, according to
Cambridge Associates. The vehicle will incorporate several socially
responsible investing strategies, to potentially include positive screens,
negative screens and corporate engagement. The goal is to develop a fund
large enough to be viable out of the gate -- and thus allay institutional
concerns about small funds -- but that welcomes investments as small as $1
million, so the fund will be available to a wide range of investors.
Four global equity firms have already expressed interest in meeting this
mandate, according to Cambridge Associates, which will not accept
additional fees for handling this project and search.
Said Sandra A. Urie, President and CEO of Cambridge Associates, "It is
always a privilege to work with our clients and other institutions to
encourage the creation of new investment vehicles that will meet and
anticipate their needs and goals. In fact, we have a long track record
pointing leading managers to investment opportunities that they may not
have thought are commercially viable but are, in fact, on the minds of
sophisticated, long-term investors."
Said Doug Stamm, CEO of Meyer Memorial Trust, "Foundations and other
institutional investors are eager to identify investment opportunities
across all asset classes that align with their mission and values, thereby
achieving greater positive impact while pursuing market rate returns. We
applaud Cambridge Associates' efforts in advancing this field and are very
excited to collaborate with other U.S. institutions to open new
possibilities for mission-related investing in emerging markets."
Said Christina Adams, Vice President-Finance & Administration at Fetzer
Institute, "There is a real desire to make emerging markets investments
that are not only smart but also have the potential to make a positive
difference for people. By collaborating with other mission-driven
institutions, we believe we can work closely with an experienced emerging
markets investment manager and Cambridge Associates to create a product
that will fulfill an unmet need."
About Cambridge Associates' Mission-Related Investing Group
The Cambridge Associates' Mission-Related Investing Group was
formed in early 2008 to help the firm's clients participate in the rapidly
emerging arena of mission-related investing. In forming the group,
Cambridge Associates worked closely with such organizations as the Annie E.
Casey Foundation, the F.B. Heron Foundation, and Meyer Memorial Trust. The
group helps clients create carefully crafted mission-related investing
plans and maintains a detailed database of managers in the mission-related
investing universe. It also helps define best practices for institutions
embarking on mission-related investing programs.
About Cambridge Associates
Founded in 1973, Cambridge Associates delivers investment
consulting, independent research, and performance monitoring services to
approximately 850 institutional and private clients worldwide. In total,
the firm has over 950 employees serving its client base globally and
maintains offices in Arlington, VA; Boston, MA; Dallas, TX; Menlo Park, CA;
London, England; Singapore; and Sydney, Australia. Cambridge Associates is
recognized as a thought leader, innovator, and advocate for institutional
investors. For more information about Cambridge Associates, please visit
www.cambridgeassociates.com.