Impact Investing
Delivering returns beyond investment
Aurum Fund Management Ltd. (Aurum) has always had a strong and committed approach to sustainability, both in the way we run our business and our in approach to social responsibility.
One of the outcomes from this is that in January 2002 we launched the Aurum Synchronicity Fund, a fund with the goal to deliver returns that go above and beyond financial returns. The fund provides investors with an opportunity to both make money and to make a difference - since 2002 it has generated over $7million for over 70 organisations in nearly 40 countries. The management fee generated by the Fund supports a number of charities, principally Synchronicity Earth, a registered charity that supports the conservation of biodiversity, ecosystems and species at risk around the world.
This places the fund in a unique position at the nexus between investment and charitable giving. Synchronicity Earth channels the type of rigour and skills that help Aurum to deliver alpha into maximising environmental and social benefits for threatened habitats, from rainforests to rivers, corals to the Congo.
In 2003 the Synchronicity Fund was recognised as the Most Innovative Fund of Funds by Hedge Funds Review.
" Aurum has a culture of care and this initiative will provide an environmental legacy that can be monitored, measured, and developed for its effectiveness to give a truly environmental, and social benefit over the long term."
Adam Sweidan , chief investment officer at Aurum Research Limited and co-founder of Synchronicity Earth.
Environmental Returns
The contributions generated through your investment in the Aurum Synchronicity Fund help to protect some of the most biodiverse ecosystems on the planet by supporting a broad range of projects; from tackling invasive species, to protecting vulnerable wildlife from extinction, and conserving the deep seas and coral reefs.
Synchronicity Earth funds projects located primarily in the developing world where areas of rich biodiversity face increasing threats and landscapes are altering at an unprecedented rate.
Environmental conservation can deliver benefits to a range of fauna and flora, while reducing larger risks to our wider environment. For example, restoring mangrove forests provides crucial improvements to the animals, marine life and people who depend on them; and these same mangroves serve as highly effective ‘carbon sinks’, absorbing carbon dioxide from the atmosphere to help fight climate change.
Synchronicity Earth’s team work alongside people and organisations who tackle the most urgent environmental problems. In the past four years Synchronicity Earth has supported 67 environmental projects around the world. These projects conserve and regenerate damaged ecosystems and protect species. Synchronicity Earth’s collaboration and networks support advocacy, awareness-raising and policy change.
This work is vital. We need a healthy biosphere to achieve peace, security, health and prosperity for all.
Case Study
- The Synchronicity Fund helps support the Mangrove Action Project (MAP), which works on Community-based Ecological Mangrove Restoration (CBEMR) in Thailand.MAP works with mangrove forest communities, grassroots NGOs, researchers and local governments to conserve and restore mangrove forests and related coastal ecosystems while promoting community-based, sustainable management of coastal resources.
- MAP’s five-pronged approach to mangrove conservation involves education, advocacy, collaboration, conservation and restoration, and sustainable community-based development. It works globally, but with a particular focus in Asia, Latin America, Oceania and Africa where mangroves are found.
- Synchronicity Earth is supporting MAP Asia to train two local communities in Trang and Krabi Provinces to restore mangroves in abandoned shrimp ponds and become stewards of the mangrove forests on which they depend.
Social Returns
Environmental conservation is most effective when it has a positive impact on the livelihoods of local people through direct employment, support for women's rights and inclusive participation.
Social returns produce sustainable livelihoods in some of the world's poorest countries and assist communities to defend their land rights, their local forests, their rivers and their coastal fisheries.
By investing in the Synchronicity Fund you will be helping Synchronicity Earth to support a sustainable and inclusive future for many communities around the world:
- The majority of projects involve local community stakeholders and build in sustainable livelihood development such as agroforestry, capacity-building and sustainable fishing practices.
- Several Synchronicity Earth projects have won awards for their contribution to social and environmental change, including Blue Ventures winning the Skoll Award for Social Entrepreneurship.
- Synchronicity Earth has a strong commitment to supporting projects that take an inclusive approach, notably those that promote indigenous rights and gender equality.
Project Focus
- Empowering local people to protect the Indian Ocean.
- Blue Ventures is a social enterprise that works with communities in the Indian Ocean region to protect threatened marine and coastal environments, maintain biodiversity and alleviate poverty.
- In 2014 it helped create the largest community-managed marine reserve around the Barren Isles in the Indian Ocean. The area is a globally important ecosystem and home to some of the world’s most endangered marine life including the Hawksbill turtle and the Madagascan Fish Eagle. It also supports the livelihoods of 4,000 local fishermen.
- However industrial and unsustainable fishing, oil and gas exploration and mineral extraction are putting the area at risk and harming the local fishermen’s livelihoods. Blue Ventures worked with the Madagascan Government to establish a protected area around the Barren Isles, which has put 4,300km2 (about 602 football pitches) of ocean under local community management.