ASI leads Big Issue tie-up to create impact investing app

● Fund managers will help to found ethical platform ● Creators say app could attract £3bn of assets by 2024

A number of fund managers are working with street magazine The Big Issue to launch an investment app designed to offer users socially responsible investment options.

Aberdeen Standard Investments (ASI), the investment arm of Standard Life Aberdeen, is co-founding The Big Exchange financial marketplace to provide ethical financial services and support The Big Funds investment platform, which creators say is capable of attracting “£3 billion of assets” within its first five years.

Columbia Threadneedle Investments, Alliancebernstein and Alquity will join ASI as founders and offer their impact funds on the platform, which has received “indications of support for at least £1 million in funding”.

The blockchain-driven project aims to help people invest “while doing good for society and the planet without sacrificing financial returns”.

ASI global head of distribution Campbell Fleming said: “Change in the way the UK invests is long overdue. That’s why we’re launching The Big Exchange.

“We are close to closing our initial round, thanks to an overwhelming level of interest and support from the investment industry.”

The app will allow investors to select funds based on their preferred risk appetite and area of impact, matched to the UN’S Sustainable Development Goals.

They will then be able to choose from ready-made bundles or individual funds, and track performance and impact, which will be recognised and rewarded through a digital social passport and token system. The long-term objective is a complete blockchain-based ecosystem, said the group.

Emma Bickerstaffe, former HSBC UK head of strategy, is leading the launch team. She said: “The aim is to offer 30 to 40 quality impact funds via the platform from day one. Over the first five years we believe The Big Exchange will become the go-to platform for retail impact investors and attract around £3bn of assets.”

Nigel Kershaw, chairman of The Big Exchange and The Big Issue Group, said: “The Big Exchange follows exactly the same principles as The Big Issue of a hand up, not a hand out.

“It will help millions of people to help each other build a better society. That’s huge.

“Central to The Big Exchange is that investors can understand the positive difference made by their choices. Our unique approach will show investors through clear indicators how funds support the Sustainable Development Goals and align with our commitment to people and the planet.”

After platform testing, it is expected that a rolling launch programme for The Big Funds will be open to the public in early 2019.