Culture Driven Alpha
ESG investing focused on Diversity and Inclusion.
Diversity we believe is a Contingent asset not reflected in typical financial metrics. There is growing evidence that diversity and inclusion are good for business. McKinsey and Credit Suisse have produced research showing that companies serious about diversity and inclusion achieve superior financial results. Different perspectives improve decision-making. Customer alignment, brand building, and talent acquisition and retention also benefit.
Within Sustainability, diversity investing is an investment theme which is often overlooked or ignored by the mainstream, this is a material factor that will attract significant asset flows in the future with strong potential for capital generation but only for an investment house willing to exploit the anomalies in such an under researched area. With a disciplined investment process together with informational and analytical advantage, based on our key investment pillars of Valuation, Sustainability and Timing were able to create a world class asset management house.
Urban Edge Capital aims to exploit the diversity factor, through companies leading in the space, management teams improving diversity, benefiting long term financial sustainability and also engaging with management team failing to reflect their employees, customers and suppliers.
Investing in diversity leads to a positive bottom line
Companies committed to diversity and inclusion are motivated by both values and value. On the values side, racial and ethnic diversity is about equality of opportunity and a workforce that reflects the complexion of society. Then there’s the business case. Research shows that companies serious about diversity and inclusion achieve superior financial results. Diversity is linked to better talent acquisition and employee satisfaction, a stronger customer orientation, and improved decision making. Employees from varied backgrounds bring different perspectives to the table.