Wellington’s 2020 Annual Global Impact Report

One of the foundation’s impact investments is the Wellington Global Impact Fund, which strives to outperform the broad stock market by investing globally in the equities of companies trying to solve the world’s greatest social and environmental issues. The philosophy behind this fund’s investment strategy is, “the world’s greatest problems present some of the world’s greatest investment opportunities.”

Annually, the fund’s managers compile an impact report, and I would like to share one section from their 2020 report with you today.

An area of focus for the fund that aligns with the foundation is that of education and job training. According to the United Nations Educational, Scientific and Cultural Organization (“UNESCO”), secondary education may reduce income inequality by 7% over two decades and each grade a child completes may raise her earning potential as an adult by 10%. Additionally, The UN connects educational success to poverty reduction. So, by investing in education-focused companies, the foundation is directly targeting one of its pillars, while also indirectly impacting its overall goal of “working to end inequities.”

Laureate Education is one of the fund’s education-focused holdings. This company comprises 25 higher education institutions serving 850,000 students, primarily residing in Latin America (e.g. 637,500 students are from emerging markets). Laureate offers vocational training and job placements primarily for low-income students. Amazingly, the graduates of Laureate’s schools earn a 31% average starting salary premium, validating that the company’s practices are resulting in improved quality of life as a result of education.

Source: Wellington Management