At FLIT Invest, we offer 6 Investment Themes that tackle various environmental and social issues. We want to ensure that your investments contribute to the issues you are passionate about, so having a clear idea of each theme’s focus is a great place to start. Each Investment Theme has an objective, impact metrics, and UN SDG contributions and provides solutions to a problem we face today. Read on to learn where you could make an impact today!
Affordable Healthcare
Objective: provide access to affordable healthcare for all.
Why it matters: Health is a fundamental human right; however, unaffordable and inaccessible healthcare presents a barrier to this right. In the U.S., the affordability of healthcare is a growing issue as the nation struggles with mental illness, reproductive rights, and social inequity. The impact of unaffordable healthcare has strong intersectionality with race and gender and is a manifestation of systemic oppression. The managed care industry could mitigate these issues in partnership with the U.S. Government and value-based care. Together, they have brought significant changes to the industry, focusing on the quality of care. The sector is also poised for growth as patients increasingly favor providers offering greater convenience, higher quality service, and lower costs. The selected companies in our Affordable Healthcare theme cover managed care, value-based care, drug retail and distributors, dental distributors, tech-enabled providers, and facilities.
Clean Water
Objective: provide clean drinking water and sanitation to all.
Why it matters: NASA has deemed the global water crisis the “environmental challenge of this century.” Despite covering most of the Earth’s surface, only 0.007% of water is accessible and suitable for human consumption. The global water crisis has already been one of the biggest global sustainability challenges. The COVID-19 pandemic has driven the global demand for sanitation and hygiene and further exposed international inequalities. With increasing populations, freshwater will become scarcer. Water will inevitably become a highly sought-after resource, and more advanced water infrastructure and sanitation facilities will be required. Global market trends indicate that the demand for clean water and investments in the sector will continue to increase, which presents an attractive investment opportunity from both financial and impact perspectives. Our Clean Water theme has been curated with selected companies from utilities, technology, and chemicals sectors that help advance the clean water goals.
Climate Solutions
Objective: mitigate climate change and adapt to a low-carbon future.
Why it matters: The climate crisis is one of humanity’s biggest challenges today. However, we know the causes and where action is needed to reduce greenhouse gas emissions and reach a net zero world. Multiple impactful solutions are already available across the most relevant sectors – from energy efficiency through waste reduction and treatment to a sustainable food value chain. The investment needs are growing as the world falls behind on environmental targets. With an unquestionable demand for climate solutions, we believe our Climate Solutions theme is well-positioned to deliver financial returns alongside positive environmental impact.
Green Energy
Objective: reduce greenhouse gas emissions through clean energy production.
Why it matters: Greenhouse gas emissions are the leading cause of global warming. The single largest contributing sector globally is electricity and heat production. Therefore, it is essential to decarbonize our energy sector to reach a net zero emission world. Over recent years there has been an investment shift from fossil fuels to green energy. This shift is not only driven by public demand for a lower carbon footprint but also by declining costs of renewable energy technology, innovations in electric battery capabilities, and governmental policy. Over the long term, we believe favorable public opinion changes and economic trends will benefit the industry further. Our Green Energy theme consists of selected companies engaged in manufacturing, developing, distributing, and installing emerging clean energy technologies such as solar power and electric vehicles.
Gender Equality
Objective: increase representation and equal treatment of women.
Why it matters: Women have long been marginalized across the globe. While some progress has been made, like legal rights and anti-discrimination policies, there is still a long way to go. Our Gender Equality theme looks beyond the bare minimum of equality regarding security and safety. It seeks to combat gender discrimination in the workplace. The main disadvantage of discrimination from a business perspective is missing out on key talent. Diversity brings value by bringing different experiences and perspectives together, leading to better decision-making. We firmly believe companies with equal representation at the board and management level, gender pay equity, transparency on gender diversity, and proactive gender goals and targets will outperform their peers. There is already strong evidence that diverse companies perform financially better.
Pet Welfare
Objective: protect, feed, and keep your pets safe.
Why it matters: At FLIT, we believe our pets’ welfare is a key priority for our generation. Over time, animals have become part of our families, and their health and happiness are just as important as our own. The pet care industry serves the needs of the increasing number of pet owners with continued innovation. The industry has grown steadily every year since 2001, even withstanding recessions. This growth is due to pet owners prioritizing their pets’ needs even in times of crisis. Growth trends are behind each pet care sector, from emerging premium products to the humanization of pets. Our Pet Welfare theme is curated by selected companies, including veterinary pharmaceuticals, diagnostics, product distributors and services, pet food and pet supplies manufacturers, and pet supply retailers.
So there they are – FLIT’s 6 investment themes. If you’re now struggling to choose, we understand; we’re passionate about every theme too! To ensure high impact and to meet our fiduciary duty around risk, you can only select 3 themes. Sometimes less is more! Our research found that adding 3 themes is the optimal amount for a diversified portfolio with high impact. Narrowing down your focus allows you to make a targeted impact through your portfolio without sacrificing returns.
For a more in-depth discussion, each theme has an investment paper which you can find on our blog.
Footnote 1: Content is for informational and educational purposes only. Any views, strategies or products discussed may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. The information contained herein should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing.
