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To live to their full potential, people need access to products and services that meet their basic needs. They also need additional support, like education and technology, that enables them to pursue their ambitions. Once people have a foundation of nutrition, community infrastructure, and essential services, plus access to career-building resources, they can participate to a greater extent in the economy. At the same time, the companies engaged in providing all of this grow, too — benefiting investors. “If you look back to the 1850s up until the 1950s, there were so many huge innovations that greatly improved productivity and people’s quality of life — things like indoor plumbing, lighting, automobiles, locomotives, and even the personal computer,” says Amber Fairbanks, Portfolio Manager with Impax Asset Management and of the new NEI Global Corporate Leaders Fund.
“[More recently], there haven’t been those huge jumps with regard to innovation, so the world is a little bit starved for growth right now. And I think improving people’s socioeconomic standing and providing opportunities for the bottom billions will provide for economic growth and stability going forward.”
Overcoming barriers to opportunity by investing in companies that meet basic needs and open doors toward a better future is part of a cycle that will lead to innovations of the future, she adds. That cycle is supported by long-term secular trends such as growing populations and expanded potential for economic advancement in emerging markets in particular.
At the same time, technology is playing a significant role in driving forward people’s progress by democratizing connectivity and e-commerce platforms. Today, individuals and small businesses can set up an online storefront to sell their wares on global websites such as Amazon or eBay, taking advantage of robust infrastructure and ready-made audiences of millions of potential customers.
“We’re thinking all the time about technological transitions and how they can be democratized. Companies that [embrace] that have a huge opportunity for revenue growth over time.”
How fund holdings meet basic needs and build skills for the future
Fairbanks offers up French multinational Danone as an example of a company that’s providing affordable access to nutritious essentials without exploiting the environment or labour. The company’s mission is “to bring health through food to as many people as possible,” and, by volume, 89.2% of Danone’s sales of dairy, plant-based, and water products have a Health Star Rating of 3.5 or more. More than 80% of Danone’s business is B Corp Certified in recognition of its environmentally friendly practices, inclusive workforce, accountable governance, value provided to customers, and generosity in the community.1
Another supplier of basic needs with significant exposure to growing demand in emerging markets is U.S. giant Colgate-Palmolive. It produces a wide range of accessible and affordable products, with some (including toothpaste and soap) helping with hygiene and health. Colgate-Palmolive was recognized in 2023 for the 13th year running as a U.S. EPA ENERGY STAR Partner of the Year. In 2024, Ethisphere named it one of the World’s Most Ethical Companies, and JUST Capital named it one of America’s Most JUST Companies. The company’s Bright Smiles, Bright Futures program has reached 1.7 billion children since 1991.2
A career-building company that broadens people’s opportunities is Wolters Kluwer, headquartered in the Netherlands. It’s a global provider of information, software, and services across multiple sectors, including healthcare, tax and accounting, financial and corporate compliance, legal and regulatory, and corporate performance and ESG. It enables career progression by offering on-the-job training that might, for example, educate health professionals about clinical trial results or legal professionals about precedent-setting cases. With customers in more than 180 countries, Wolters Kluwer recognizes that “their future is also the story of the future of society at large.”3
In emerging markets, however, career advancement may depend on learning English. A company like U.S.-based Duolingo has gamified language learning and made it accessible through mobile devices, and it offers a freemium model so global citizens can learn free of charge or choose to pay extra for additional features. Duolingo recently added music and math to its lesson lineup, further expanding opportunities for education. Its mission is “to develop the best education in the world and make it universally available,” and it’s positioning itself to capitalize on the two billion people currently applying themselves to learning a foreign language.4
A new path to performance
Society is changing and so are the investment opportunities. Investors can capitalize on this with the expertise of a specialist investment manager and the NEI Global Corporate Leaders Fund.
For more information about NEI Global Corporate Leaders Fund, please visit neiinvestments.com.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus and/or Fund Facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
NEI Investments is a registered trademark of Northwest & Ethical Investments L.P. (“NEI LP”). Northwest & Ethical Investments Inc. is the general partner of NEI LP and a wholly-owned subsidiary of Aviso Wealth Inc. (“Aviso”)
3www.wolterskluwer.com/en/about-us/strategy
4http://investors.duolingo.com
