UBC Investment Management Trust uses portfolio funds to help advance ESG adoption among hedge fund managers

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VANCOUVER–(BUSINESS WIRE)–As part of its evolving responsible investment strategy, UBC Investment Management Trust Inc. (“UBC IMANT”) uses its influence and capital under management to advance ESG integration within the fund industry hedging – a group of fund managers that has lagged behind its peers in adapting to the growing importance that environmental, social and governance factors contribute to investment performance.

On behalf of the UBC Endowment, UBC IMANT made an initial investment of US$25 million in the Titan Eclipse Fund LP managed by Flatworld Titan LLC, a joint venture between Titan Advisors LLC and Flat World Partners. The Titan Eclipse fund is one of the first hedge fund vehicles to advance the ESG mandate by accelerating the flow of capital to high-quality managers who effectively and transparently integrate ESG principles into their investment research process while displaying strong values ​​as a company.

“Hedge funds have been slower to evolve and embrace responsible investing,” says Dawn Jia, CEO of UBC IMANT. “We are actively investing in this space and felt it would be prudent to partner with a company that was both strong in the selection and diligence of hedge fund managers, but was also a leader in sustainability, impact and responsible investment practices. The focus on diversity, equity and inclusion within the Titan Eclipse Fund is also in line with our own principles. We fundamentally believe that having a team diverse and inclusive translates into better decision-making at all levels.

UBC IMANT’s ability to anchor the Titan Eclipse Fund, in addition to providing strong risk-adjusted returns, is expected to yield knowledge sharing benefits that will further evolve UBC IMANT’s ESG integration and management practices. responsible investment across the portfolio.

“When we looked at the hedge fund space, it was difficult to find UBC IMANT peers who had successfully taken ESG factors into account when evaluating hedge fund managers,” says Yasir Mallick, Portfolio Manager Principal UBC IMANT. “When we met Titan and Flat World, they demonstrated all the qualities and attributes we had in mind in a partner, except we had the added benefit of finding two.”

Beyond the ESG label, the Eclipse team works systematically to identify ways in which managers can further improve their ESG practices and results. As part of these efforts, Titan Eclipse uses proprietary software to assess managers’ alignment on material ESG and impact factors such as carbon emissions and diversity gaps.

Mallick says the combination of more than 20 years of experience selecting hedge fund managers at Titan and the sustainability, ESG and impact investing experience of Flat World’s two co-founders, Kate Starr and Anna-Marie Wascher, has created an impressive team aligned with UBC IMANT’s approach to manager selection, due diligence and ongoing oversight.

Founded in 2001, Titan Advisors (titanadvisors.com) is a hedge fund solutions company, managing hedge fund portfolios on behalf of institutions and high net worth investors. With approximately $4.9 billion in firm assets and a research team in the US, Canada and the UK, Titan is well placed to identify the world’s most talented hedge fund managers. Flat World Partners (flatworld-partners.com) is an institutional advisory and asset management firm 100% focused on sustainable investments. The firm advises and supervises the capital of foundations, family offices, pension plans and other institutional investors.

About UBC Investment Management Trust

UBC IMANT is the investment office responsible for managing the endowment and working capital funds of the University of British Columbia and the assets of the UBC staff pension plan. UBC IMANT implements its investment strategy through a ‘manager of managers’ approach, seeking out and investing in investment funds managed by the world’s leading investment management professionals. As part of its responsible investment strategy, UBC IMANT seeks partnerships with innovative and skilled active managers with a proven ability to integrate ESG considerations into their investment process while adhering to key performance and risk management criteria. risks.

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