Global Sustainability Trust IPO

  • Global Sustainability Trust PLC
  • Initial Public Offering
  • Market: Main Market-LSE
  • Sector: Investment Company
  • Offer Size: £200m
  • Price: 100 pence per share
  • Closing: Monday 28th January 2019, 1pm

Offer Now Open

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Global Sustainability Trust IPO

22nd January 2019

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM) OR TO ANY NATIONAL, RESIDENT OR CITIZEN OF THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM)

Expected Timetable

  • Offer Open

    4th January 2019 

  • Books Close:

    28th January 2019

  • Allocation announced:

    29th January  2019

  • Trading begins:

    31st January 2019


About the Global Sustainability Trust plc

Aberdeen Fund Managers Limited (AFML) are launching a new closed-ended fund on the London Stock Exchange. The fund aims to invest in a diversified global portfolio primarily consisting of private market investments, which aims to create positive measurable environmental and social impact. Management recognises changes in investment patterns, which are moving more toward ethical investing which considers impacts on society and the environment. Investors will use the UNs sustainable development agenda as a guide to direct capital.
The companys investment strategy is to build a diversified private portfolio which can deliver attractive financial returns while generating intentional and measurable positive environmental and social impact. Fund managers anticipate a focus on private equity will allow them to benefit from an illiquidity premium arising from the long-term nature of the private market.
Target impact assessment pillars are to be based across eight categories consisting of circular economy, sustainable energy, food & agriculture, water & sanitation, health & social care, financial inclusion, sustainable real estate & infrastructure and education & employment. With 20-35% in private equity, 15-30% in real estate, 0-15% in natural resources, 10-25% in private credit, and 0-10% in listed investments.

Highlights
  • Targeting a total return of 6-8% per annum
  • An estimated US$1 trillion of assets will be committed to impact investing by 2020 giving a sector growth forecast of US$250 billion
  • Allows investors to gain access to the private equity market through a listed entity
  • Strategy orientated toward longer-term growth
  • Strong management team
  • Management aims to be diversified across asset class, geography and sector
  • Low correlation with listed markets increasing diversification benefits
  • No single asset in the company’s portfolio will exceed 10% of total assets at the time of investment
  • The company expects to be fully committed in 18 months and fully invested in 36 months

Use of Proceeds
  • To be invested directly and indirectly in private market assets (real estate, infrastructure, private equity, private credit) with the objective to create a positive impact

Risks*
  • Adverse economic conditions and general market conditions may affect the value of investments and therefore the company’s performance
  • The company has no employees and is reliant on the performance of third party providers
  • There is no guarantee the company will meet its target and actual returns may be significantly lower
  • Failure to conduct significant due diligence may result in the fund investing in over-valued assets or in assets which are not deemed commercial
  • Private market investment is deemed highly illiquid and therefore may impact the funds ability to exit a poor or unsuitable investment or diversify the portfolio at any one time
  • Interest rate risk
  • Credit Risk
  • Concentration risk
  • Regulatory risk
  • Exchange rate risk
  • The company may not meet its investment objective
  • The company may make use of derivative instruments which may increase volatility
  • The fund may invest in other investment funds giving rise to potential conflicts of interest and increased charges
  • The addition of ethical investment as a constraint may significantly reduce the number of potential investments in the pipeline that also meet other investment criteria
  • Other risks associated with close-ended investment trusts
  • Other risks associated with LSE listed stocks

*Please note that these risks represent the judgement of Cornhill Capital, there may be additional risks represented in the prospectus


Offer Documents

Important information

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