This category includes articles about people, firms and foundations that invest in social good by investing in social entrepreneurs, social impact or pay-for-success bonds, etc.
This category includes articles about people, firms and foundations that invest in social good by investing in social entrepreneurs, social impact or pay-for-success bonds, etc.
Press Release – Social impact investment, which aims to improve well-being as well as earn a financial return, could be more effective if it were more clearly defined internationally with more measurable outcomes, according to a new OECD report.
Social Impact Investment: The Impact Imperative for Sustainable Development calls for international standards to be applied on collecting data and measuring impact. Currently, most impact investment goes to areas with relatively easy returns, such as financial services, energy and housing as perceptions persist of a trade-off between social and financial returns.
The OECD has proposed defining social impact investing as targeting core development, social and environmental areas that help people and countries most in need in underserved or developing regions, and stipulating that the primary focus should be on delivering measurable impact. No such definition is being universally applied, however, and there is little rigour in setting boundaries on what should count as impact investment and a lack of internationally comparable data and evaluation tools.
“The challenge lies in defining and measuring impact,” said OECD Development Co-operation Director Jorge Moreira da Silva. “Different countries, public and private organisations are using different yardsticks to measure different elements. To counter the risk of ‘impact washing’, public authorities have a responsibility to set standards and ensure they are adhered to.”
The number of social impact investment funds has quadrupled in two decades to over 200 funds with USD 228 billion invested, more than half of that in emerging markets, according to the Global Impact Investing Network. The phenomenon is spreading to mainstream investment funds as wealthy investors and philanthropists increasingly want their money to also have a positive social or environmental impact.
Impact investing is proving to be key for channelling new resources – primarily funding but also innovation, accountability and sustainability – towards the UN Sustainable Development Goals. For example, a GBP 10 million bond that funded a UK non-profit, Golden Lanes Housing, that has provided adapted housing and related services for around 1,500 people with learning disabilities was also able to return 4% interest to investors. In the developing world, investment firm Sarona Asset Management provides growth capital to small businesses in developing countries and frontier markets including Egypt, India, Nigeria and Tunisia.
The OECD report says 45 countries have adopted public instruments related to impact investing, with the European Union, United Kingdom, Malaysia and France leading the way, and 20 have adopted a legal definition for social enterprises.
It says governments should now do more to improve fiscal and regulatory incentives for impact investing and put in place the necessary legal structures for the market to function well. This could include updating financial and fiscal regulation, establishing reporting standards, and increasing flexibility into corporate legislation so that rather than having to identify as being a for-profit or a non-profit, companies can be hybrids.
Improved standards for social impact investment funds should lead to more effective impact investment by mainstream funds.
After Investment In Amped Innovation, Pact Ventures Signs Strategic Partnership With Medical Diagnostics Start-Up MDaaS
Press Release – WASHINGTON, D.C., USA | December 10, 2018 – Pact, an international, non-profit development organization, announced today that its newly revamped impact investment group, Pact Ventures (PV), has finalized its second corporate partnership since the start of fiscal year 2019.
The announcement came after an agreement with Nigeria-based MDaaS Global – a tech-enabled medical diagnostics company, specializing in imaging, cardiac, and laboratory services – to provide modern diagnostics services to Pact’s beneficiaries.
Brian Vo – VP, Social Investment and Innovative Financing – and PV team lead, noted that the partnership has the potential to be a game-changer for communities impacted by HIV.
“In Nigeria, and other countries where we work, one of our focus areas is on improving maternal, newborn, and child health and stopping the spread of HIV. This partnership, with an impact-oriented, private-sector partner, can help us increase the scale and impact of the work we do in-country by creating access to diagnostic services for our beneficiaries.”
Vo, who joined Pact earlier this year after careers in finance and management consulting, added that the MDaaS Global agreement is the second in a broader strategy of “tri-sector” partnerships Pact Ventures has pursued, aimed at engaging and leveraging the private sector to magnify the impact of Pact’s core development work.
Earlier this year, PV also made an investment in Amped Innovation, a designer and manufacturer of income-generating solutions and off-grid solar appliances. The investment came on the heels of Pact’s launch of ‘Energy for Prosperity,’ a platform to improve energy access through both donor-funded and private sector initiatives, and Smart Power Myanmar, an initiative to mobilize capital to roll out thousands of mini-grids and other rural electrification solutions in Myanmar.
“We are leveraging our Amped investment to distribute off-grid solar appliances to beneficiaries in places like Myanmar. In the process, we are shifting the paradigm of Pact’s relationship from donor-beneficiary to provider-customer. Marginalized communities must have a voice in what support they get. In addition to classic development, market-based development solutions give them that voice – they speak through how they spend their resources and where they invest in their communities. Across Pact, we are looking to create similar sustainable market forces to alleviate social need at scale.” said Vo.
Of their collaboration with Pact Ventures, Amped said, “It has been a pleasure to team up with the Pact Ventures team. They executed a smooth, fast diligence process with minimal burden on our end. Post-investment, they’ve been very proactive and helpful in creating synergies and collaborating on opportunities. Overall, they’ve been a different breed of impact investor and we’re excited to continue working together.”
For his part, Pact CEO Mark Viso welcomed the partnership as another important milestone in Pact’s on-going transformation into a ‘Fourth Sector’ organization – blurring lines between public, private, and social benefit while creating shared prosperity through market solutions.
“Pact Ventures was set up to help us stay ahead of emerging trends in blended financing and impact investing. Bringing together profiles less commonly seen in a classically USAID-funded development organization, we now have a team with high-performing backgrounds from the likes of McKinsey & Company, JP Morgan, Morgan Stanley, and MBAs from top-tier programs. We’re coupling technical experience in investment banking, private equity, strategy, and social entrepreneurship with our classic approaches to development and policy to better understand the geographies we work in,” said Viso.
“We’ve brought this suite of expertise in-house to create market mechanisms that can listen and adapt to the voices of our beneficiaries in a way we could never before. Although an unusual pairing, Pact believes this combination of profiles is what is needed to solve complex development challenges, and we’re already seeing the results.“
“In the coming months, we are focused on three key goals,” said Brian Vo. “We want to identify and invest in promising social enterprises that augment Pact’s core capabilities. We want to explore and test innovative models to deliver impact in new and sustainable ways. Finally, we are looking to build shared-value relationships with private sector partners and invite anyone who is interested in learning more to reach out.”
Press Release – NEW YORK, January 9, 2019 – Cornerstone Capital Group (“Cornerstone”), an SEC-registered investment advisor that pursues financial returns alongside social impact by incorporating environmental, social, and governance (ESG) analysis into portfolio design, today announced the appointment of Kristin Frank to its Board of Directors. Frank, recently named President and Board Director at AdPredictive, a software company delivering the industry’s first outcomes-driven customer marketing intelligence platform, is a highly seasoned industry thought leader and transformational executive who brings with her more than 20 years of global business experience.
“We are absolutely delighted to have Kristin Frank joining our Board. Kristin’s exceptional leadership in the media industry, her deep expertise in digital media, and her innovative excellence in technology and distribution will add tremendous value to our organization,” said Erika Karp, Founder and CEO of Cornerstone. “At Cornerstone, as we strive to optimize both financial and social impact, we know that Kristin will set a high bar for the stewardship and scaling of the company.”
Frank has built, transformed, led and scaled successful businesses. Most recently, she served as Chief Operating Officer at MTV where she managed revenue, strategy, and operations for a $1.8B portfolio. She spearheaded the brand’s turnaround, brand reinvention, digital innovation, and market growth.
“I am honored to join Cornerstone’s Board of Directors and be part of its mission to integrate sustainable finance across the capital markets,” stated Frank. “This is an exciting time to join Cornerstone, as it continues to stand out by demonstrating an incredible commitment to impact investing and sustainability.”
Previously, Frank was EVP at Viacom Music and Entertainment Connected Content Division, where she doubled revenue by transforming consumer product, data, engineering and content. Prior to this position, Frank was General Manager for MTV and VH1 Digital where she doubled traffic to its digital platforms. She also acted as Chief Operating Officer of LOGO TV where she launched and built a powerful new media business.
Additionally, Frank serves on the Board of Directors of Brightcove (Nasdaq: BCOV), and Gaia (Nasdaq: GAIA). She also served on the Board of Gaiam and completed its sale to Sequential Brands in 2016. Frank was recognized by Variety as one of the most powerful women in cable and top women in digital.
Founded in 2013, Cornerstone Capital Group is a financial services firm based in New York. The mission of the firm is to optimize financial performance and social impact through rigorous research and the systematic integration of Environmental, Social and Governance (ESG) factors into portfolio design. In offering investment advisory and strategic consulting services, Cornerstone works with individuals, family offices, foundations and endowments, corporations and other financial services providers, and promotes new research in the field of ESG analysis.
Press Release – WASHINGTON, D.C., Jan. 9, 2019 – US SIF: The Forum for Sustainable and Responsible Investment today announced the election of four board directors. Directors also serve on the US SIF Foundation Board. US SIF’s 14-member board of directors provides strategic guidance to advance sustainable, responsible and impact investing across all asset classes.
The new board members are:
Lisa Woll, CEO of US SIF, said “I have had the opportunity to work closely with Kimberly, Aniket, Kurt and Leslie and know the tremendous value they will bring to the US SIF board, particularly as we begin to roll out our new Strategic Plan. I am honored to be able to work more closely with them.”
“We are thrilled to welcome Kimberly, Aniket and Kurt to the board and to have Leslie serve another term,” said Craig Metrick, US SIF Board Chair. “Their deep experience and specific areas of expertise will further advance the mission of US SIF and the rapidly expanding field of sustainable investing.”
“I also am deeply appreciative of the efforts of our outgoing board members. We’re grateful for their dedication and service,” said Metrick.
Departing from the board are Michelle Clayman of New Amsterdam Partners, Justin Conway of Calvert Impact Capital and Stephen Freedman, formerly with UBS. A full list of the US SIF board of directors can be found at ussif.org/board.
About US SIF
US SIF: The Forum for Sustainable and Responsible Investment is the leading voice advancing sustainable, responsible and impact investing across all asset classes. Its mission is to rapidly shift investment practices toward sustainability, focusing on long-term investment and the generation of positive social and environmental impacts. US SIF members include investment management and advisory firms, mutual fund companies, asset owners, research firms, financial planners and advisors, broker-dealers, community investing organizations and nonprofit associations. The 9th US SIF Annual Conference will take place from June 10-12, in Minneapolis, MN.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF, including offering training for advisors and other financial professionals on the Fundamentals of Sustainable and Impact Investment. Learn more at ussif.org.
New Generation of Advisors Looking For More Fixed Income ESG Options to Offer Their Conservative Clients
Press Release – BOCA RATON, FL – January 8, 2018 – Among a new generation of financial advisors, with 3 to 9 years of industry experience, nearly all (99%) of those who use individual bonds discuss social impact goals with their clients, which is almost 25% more than advisors with over 10 years of tenure, according to a new survey released by Incapital LLC, a leading underwriter and distributor of fixed income securities.
“This generation has had more access to information on social impact investing than any before them, so it is no surprise that millennials and the generation of advisors that serve them, are like-minded in their support of results-driven causes,” said Louise M. Herrle, Managing Director and Head of Incapital’s Legacy™ platform for distributing social impact investments. “They understand that they can achieve their clients’ financial goals with investments that reflect their personal values.”
A majority of surveyed advisors continued to use equity assets to achieve social impact goals, with fewer using fixed income options.
Yet 58% of those advisors with 3 to 9 years of tenure agreed there are too many equity ESG (Environmental, Social and Governance) options and not enough fixed income ESG options to show their more conservative investors. Only 34% of advisors with over 10 years of tenure agreed.
“Advisors are looking for options that best match their clients’ risk tolerance,” said Ms. Herrle. “Equity ESG funds may have too much risk for some conservative clients. Advisors are finding that social impact bonds — which do carry credit risk but also the benefits of income predictability, return of principal at maturity and declining interest rate risk as the maturity date approaches — can be utilized as part of a conservative income portfolio strategy.”
It’s important to understand that the risks for equity and bond funds differ from those of individual bonds. While multiple holdings within a fund can achieve issuer diversification, they are still subject to market risk. Individual bonds are subject to the credit risk of the issuer. If the issuer defaults, the coupon payments (predictable income) and principal could be at risk. Funds have strong liquidity, but it is important to note that individual bonds are intended to be held to maturity. If they are sold prior to maturity there may not be an active secondary market and the investor could receive less than the original investment.
About the Survey
The Incapital Financial Advisor survey was conducted by Q8 Research LLC using a quantitative online survey methodology. A total of 200 financial advisors across channels completed the survey during the period September 20 to October 1, 2018. It was conducted among a diverse set of respondents from various firms, including wire houses, regional dealers, independent dealers, as well as Banks and RIAs. The survey’s objective was to uncover insights about financial advisors’ perceptions and behaviors regarding fixed income investing, client asset allocations broadly, as well as looking specifically within the fixed income sector. All respondents have 3+ years tenure as a financial advisor and are involved in portfolio construction decision-making with their clients.
Incapital was founded in 1999 and today is a leading underwriter and distributor of securities to more than 800 broker-dealers, institutions, asset managers, RIAs and banks. The firm represents more than 300 issuing entities and has underwritten more than $470 billion in securities. The firm is headquartered in Chicago, IL and has a principal office in Boca Raton, FL. Further information is available at www.incapital.com.
Any financial product sold prior to maturity may be worth more or less than the original amount invested. Depending upon the specific product offering, investment risks include, but are not limited to, interest rate risk, credit risk, call risk and liquidity risk. Additionally, unless otherwise specified in the respective offering documentation, the product(s) discussed herein are not FDIC insured, may lose value, and are not bank guaranteed. Past performance is not indicative of future results. Securities offered through Incapital LLC. Member FINRA/SIPC. Survey conducted by Q8 Research LLC, a full-service marketing research consultancy. Incapital LLC and Q8 Research LLC are not affiliated.
Kampala-based off-grid solar company SolarNow closes largest-yet receivables financing facility with SunFunder, Oikocredit and responsAbility
Press Release – The $9m facility is SolarNow’s third structured asset finance instrument, known as SAFI, arranged by SunFunder. It will enable the company to deploy 17,500 new off-grid solar systems to customers in Uganda, along with a range of appliances.
SolarNow CEO Willem Nolens commented: “This syndication and the SAFI structure allow us to minimize the fundraising burden and to focus on our business instead. By selecting the right clients and treating them well, our credit portfolio remains healthy and we create a strong foundation for sustainable growth.”
The new investment marks the 5th anniversary of SolarNow’s partnership with Nairobi-based SunFunder, and their debt facility together. It is also the second time that Oikocredit and a responsAbility-managed private debt fund have participated with SunFunder to finance the company, after a similar $6m syndication 14 months ago.
SunFunder’s Director of Investments Surabhi Visser commented: “We have just had our 5-year anniversary working with SolarNow, and this takes us to $19m in investments that we’ve arranged or made directly in the company. We are proud to have backed SolarNow’s growth delivering top quality solar systems and appliances throughout Uganda.”
The new systems will amount to around 2.5MW of new installed off-grid solar capacity, resulting in over 210,000 tons of greenhouse gas emissions avoided through displaced kerosene for lighting. Among the expected impacts, the company estimates that over 70,000 women will gain improved energy access in Uganda.
Oikocredit’s Renewable Energy Manager David ten Kroode commented: “We’re proud to support the continued growth of SolarNow. Their strategy of offering a wide range of solar products and services to energy-poor communities is perfectly aligned with Oikocredit’s mission to help alleviate poverty by improving access to energy.”
The SAFI product is a tailored receivables financing structure designed by SunFunder for solar companies deploying systems through pay-as-you-go and solar leasing models. SAFI finances their credit offerings directly, allowing them to reach more customers.
The facility is the third syndication arranged by SunFunder with responsAbility and Oikocredit, showing the ongoing importance of specialist origination and collaborative investments for emerging market solar. The three investors also worked on a multi-currency syndicated debt facility for PEG Africa in Ghana and Cote d’Ivoire.
responsAbility’s Stefan Issler, Head of Direct Investments, Energy Debt Financing, added: “We were excited to see SolarNow’s successful growth ever since we teamed up with SunFunder to finance the company a little over a year ago and look forward to supporting SolarNow as a long-term financing partner.”
SolarNow is a for profit social business which sells, finances and installs modular solar systems (50Wp to 20kW) and solar appliances (LED tubes, TVs, fridges, water pumps, flat irons, etc.) to households and businesses in East Africa. Through a network of 55 branches and 850 staff in Uganda and Kenya, the company provides last mile distribution, up to 2-year financing and 5-year free service to its clients. To date SolarNow has served more than 35,000 clients. Client repayment exceeds 97%, reflecting high client satisfaction and rigorous credit assessments and management.
Since 2012, SunFunder has provided over USD $58m debt financing to more than 40 solar borrowers in Africa and Asia, directly improving energy access for over 4.6 million people and mitigating 412,000 tons of CO2 emissions annually. SunFunder raises capital through private debt offerings, and expects to reach first close on a new USD $85m fund in the coming weeks. The company exists to solve the financing bottleneck for off-grid and weak-grid solar, providing working capital loans, receivables financing and project financing to manufacturers, distributors, developers, installers and retailers that provide solar energy in countries such as Tanzania, Kenya, Uganda, Rwanda, Ghana and India.
Social impact investor and worldwide cooperative Oikocredit has over 40 years’ experience funding organisations active in financial inclusion, agriculture and renewable energy. Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to sustainably improve their living standards. Oikocredit finances close to 700 partners in over 70 countries, with total outstanding capital of € 971 million (at 30 September 2018). For more information: www.oikocredit.coop.
ABOUT RESPONSABILTY INVESTMENTS AG
A leading asset manager for impact investments in emerging economies, responsAbility manages USD $3 bn of assets through a variety of investment vehicles that provide private debt and private equity to some 540 companies with inclusive business models across 90 countries. Founded in 2003, the company is headquartered in Zurich, Switzerland, and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris.
There are 1.2bn people in developing countries with no access to electricity, while another billion only have unreliable access. Solar power now offers an economic solution for people living off-grid in rural areas, providing lighting, mobile phone charging and even highly-efficient televisions and fridges. A new generation of solar companies have emerged to deploy these systems commercially, but many have struggled to access mainstream financing to fuel their growth.
Press Release – BOSTON, Jan. 3, 2018 – Natixis Investment Managers today announced the launch of the Mirova International Sustainable Equity Fund (MRVYX), an international equity mutual fund which utilizes Mirova’s sustainable investing experience. The fund became effective on December 28, 2018. The Mirova International Sustainable Equity Fund is an all-cap international equity fund that seeks long-term capital appreciation. The Fund also seeks to maximize exposure to companies with a positive impact on the United Nations’ Sustainable Development Goals, while avoiding companies whose activities or products have a negative impact on or create risk to achieving such goals.
“At Mirova, we believe there’s an inextricable link between long-term value creation and sustainability,” said Jens Peers, CFA, Chief Investment Officer, Sustainable Equities, at Mirova. “We feel that investors should be connected to the real world economy by investing in innovative businesses that play a real role in building a sustainable world, and therefore, we are giving investors the opportunity to be actively involved in improving corporate environmental, social and governance practices.”
Mirova takes a thematic approach, investing in companies they believe present opportunities and solutions related to sustainable development themes derived from long-term transitions – demographics, environmental issues, technological advances, and governance changes. The managers conduct detailed fundamental research to select companies they believe are well-managed, are expected to benefit from strong, sustainable competitive advantages, and have demonstrated a solid financial structure while avoiding irresponsible risks. Managers invest in securities trading at significant discounts to what they believe are their intrinsic values.
“We are pleased to provide investors with an opportunity to further diversify their portfolios in an international equity fund that draws on the expertise of our affiliate Mirova,” said David Giunta, CEO for the US and Canada at Natixis Investment Managers. “Through the fund, investors are able to gain access to the growth potential associated with long-term, sustainable investment themes. In doing so, they are also potentially improving the carbon footprint and sustainability profile of their overall portfolio.”
The fund is co-managed by Jens Peers, CFA®, Hua Cheng, CFA® and Amber Fairbanks, CFA®. The fund seeks to maintain a relatively concentrated portfolio of approximately 50 non-US stocks and is managed by Ostrum Asset Management U.S., LLC (“Ostrum US”).
Natixis Investment Managers Affiliates/Divisions:
Active Index Advisors(R)(1) | AEW | AlphaSimplex Group | Flexstone Partners | Gateway Investment Advisers | Harris Associates | Loomis, Sayles & Company | Managed Portfolio Advisors(R)(1) | Mirova(2) | Seeyond(2) | Vaughan Nelson Investment Management |
1 A division of Natixis Advisors, L.P.
2 Operated in the U.S. through Ostrum Asset Management U.S., LLC.
Investment Made as Part of Firm’s Impact Strategy Focused on Addressing Global Societal Challenges
Press Release – SINGAPORE – December 13, 2018 – Leading global investment firm KKR today announced an investment in Barghest Building Performance (“BBP” or the “Company”), a Singapore-based provider of energy savings solutions to Heating, Ventilation and Air Conditioning (“HVAC”) systems in commercial and industrial buildings. KKR will be investing up to S$45 million in the Company.
BBP’s energy efficiency solution applies a combination of proprietary software, customized engineering, and equipment to deliver the same cooling load to sites while consuming up to 40% less energy. The solution is applicable for all central chiller plant systems, regardless of brand or age. BBP also supports its clients with continuous commissioning technologies and comprehensive asset management services that sustain the level of savings over long periods of time. BBP offers the solution on a yearly subscription based on 3rd party verified energy savings, eliminating the need for upfront investment costs by customers. The Company prides itself on minimizing operational risk and maximizing system availability. BBP has helped customers across Asia Pacific in commercial office space, hotels, district cooling and large complex industrial facilities such as semiconductor fabrication sites. Further details on the Company’s projects and customers can be found here.
“We invested in BBP because we share the passion of this dynamic, entrepreneurial team to build BBP into a pan-Asian energy solutions leader. We’re excited to be investors, and we’re equally excited to be customers as we believe that many of KKR’s portfolio companies will also benefit from BBP’s solutions,” said Ashish Shastry, KKR Member & Head of Southeast Asia.
“When we first set out to design a solution to improve energy efficiency in existing systems throughout Asia, we knew the impact could be quite large. Now with KKR and their resources onboard, we are thrilled knowing how much greater that impact can be – well beyond Asia – and we are greatly looking forward to working with KKR in accomplishing our mission,” said Poyan Rajamand, BBP Co-Founder and CEO.
For KKR, the investment is part of the firm’s Impact strategy, which is focused on identifying and investing behind businesses with positive social or environmental impact that measurably contribute solutions to one or more of the United Nations Sustainable Development Goals (“SDGs”).
“Our Global Impact team is focused on investing behind companies whose core commercial product or service addresses global environmental or social challenges. BBP contributes solutions to two of the United Nations SDGs – Affordable and Clean Energy, and Industry, Innovation and Infrastructure – with a business model meant to fundamentally change best practices for energy management. BBP’s motivation, as is ours, is to achieve meaningful and sustainable costs savings for customers directly alongside long-term and measurable environmental impacts for society,” said Robert Antablin and Ken Mehlman, Co-Heads of KKR Global Impact.
BBP currently operates across eight markets, including Southeast Asia, China, India and Taiwan, and is accredited by Singapore’s national government bodies such as the Infocomm Media Development Authority, National Environment Agency and Building and Construction Authority. Since its founding in 2012, the Company has received many accolades, most recently including recognition on The Peak’s Power List, ranked on the first-ever APAC 25 list, awarded IFMA Singapore’s FM Technology Provider of the Year, and honorable mention recipient for Best Practices at the 2017 and 2018 EENP Awards.
About KKR Impact
KKR’s Impact strategy focuses on identifying and investing behind global opportunities where financial performance and societal impact are intrinsically aligned – in other words, where there is no trade-off between impact outcomes and financial outcomes. Specifically, the strategy is focused on businesses providing commercial solutions that contribute measurable progress toward the SDGs.
Over the last decade, KKR has been a leader in driving and protecting value throughout the firm’s private markets portfolio through thoughtful Environmental, Social and Governance (“ESG”) management, as well as measuring and reporting on performance to the public and investors. The firm also has a history of investing in businesses that promote sustainable solutions to societal challenges. This experience of responsible investment combined with a changing landscape of global challenges led to KKR’s decision to create a dedicated Global Impact business in 2018. KKR’s Impact strategy will build on this experience.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
Barghest Building Performance (“BBP”) provides energy savings solutions to Heating, Ventilation and Air Conditioning (HVAC) systems in commercial and industrial buildings. BBP uses sensors, software algorithms, equipment controls, and customized engineering design to seek to reduce electricity consumption in chiller systems. BBP currently operates within Southeast Asia, China, India and Taiwan.
Forward-looking analysis identifies low carbon mutual funds that provide positive carbon impact
Press Release – (NEW YORK — December 12, 2018) — Clean Impact Rankings, an initiative to assess investment vehicles based on carbon savings, announced the results of its first mutual fund assessment. Capital allocated to the top five funds is projected to have up to 50 times more positive carbon impact—carbon savings delivered by climate solutions—than peers. To understand how funds with low carbon risk can also drive carbon savings, Clean Impact Rankings looked at nearly 90 Morningstar® Medalists with the Morningstar Low Carbon Designation™ across six diversified equity categories.
The top five ranking mutual funds include American Funds New Economy, American Funds New Perspective, Fidelity® Growth Company, PRIMECAP Odyssey Growth and Vanguard Capital Opportunity. More information on the rankings and methodology can be found at www.vestedimpact.com.
“Key to our transition to a low carbon future is the increased funding for clean energy and climate change solutions. Investments in more effective companies and technologies will not only lead to greater long-term carbon abatement—they also have the potential to outperform peers. To do this, investors need to understand both the financial return and the climate change impact of solutions-oriented investments,” stated Joy Williams, Chair of New York State’s Decarbonization Advisory Panel and former in-house climate change expert at Ontario Teachers’ Pension Plan.
Canetic Advisors, a data analytics company specializing in forecasting the performance and carbon impact of renewable and cleantech companies, established Clean Impact Rankings and conducted the underlying analysis. The firm leveraged aggregated insights from cleantech and renewable energy experts on the segmented value chain attribution for carbon reduction and projected efficiency gains for specific technologies.
“These rankings will inform individual investors looking to increase the positive impact of their low carbon investments. By investing in the most effective publicly-traded climate solutions we all can drive the low carbon economy. This is crucial more than ever given the recent Intergovernmental Panel on Climate Change (IPCC) announcement,” said Tony Altmann founder of Canetic Advisors.
Additional Clean Impact Rankings will be released in 2019 to aid institutional and retail investors who wish to understand the positive climate impact of their investments.
About Clean Impact Rankings
The Clean Impact Rankings assess investment vehicles on their positive carbon impact. The results provide forward-looking snapshots for investors seeking a positive tilt towards climate solutions. The rankings can be found at www.vestedimpact.com, a digital resource established by Canetic Advisors to share industry assessments and insights on carbon abatement with investors.
About Canetic Advisors
Canetic Advisors is a data analytics company developing forward-looking actionable insights including on ‘alpha adjusted’ climate impact potential that enable public and private market investors to simultaneously optimize returns and climate impact. We measure and quantify climate impact potential for funds, family offices, investment managers and advisors in ESG and impact investing.
Leveraging the industry experience of experts who know renewables and cleantech inside and out, Canetic has built proprietary models with forecasts that are easy-to-use and apply. Canetic evaluates and monitors a global database of public companies and private projects that are focused on carbon abatement optimized for returns. The firm’s deep operating insights and rigorously developed algorithms are applied to pure play companies, projects, and real assets. More information can be found at www.caneticadvisors.com.
Press Release – Zurich, 10 December 2018 – Swiss-based impact investment manager BlueOrchard Finance Ltd (“BlueOrchard”) has launched a UCITS-compliant Emerging Markets SDG Impact Bond Fund to grant retail and institutional investors access to a “liquid impact fund”. The Fund is designed for investors that seek a scalable and liquid alternative to traditional microfinance funds.
The BlueOrchard UCITS-Emerging Markets SDG Impact Bond Fund invests in bond issuances from corporations and public/private financial institutions that finance or engage in impact activities which advance the UN Sustainable Development Goals (SDGs). The fund will invest in a diversified portfolio in emerging and frontier markets with the goal of providing retail and institutional investors with a scalable, impact oriented alternative to traditional fixed income products. The Fund, registered in Luxembourg and managed by BlueOrchard Asset Management (Luxembourg), SA is accessible to investors with a variety of share classes in different currencies to suit investor requirements.
“Our investors have expressed considerable interest of late in a vehicle that combines financial and social returns with liquidity. We have responded by creating this Fund and believe that it presents an excellent opportunity for both BlueOrchard and our investors to further engage in key emerging markets and expand our impact,” said Patrick Scheurle, CEO of BlueOrchard.
“As a company founded by initiative of the UN, we are extremely proud to launch an impact fund dedicated to helping advance the UN Sustainable Development Goals in emerging markets,” said Peter A. Fanconi, BlueOrchard’s Chairman of the Board.
The Fund is managed by an experienced team with a long track record of successful debt investments in emerging and frontier markets. They combine a unique field presence, proprietary rating methodologies and broad hedging capabilities to deliver innovative impact investment products. BlueOrchard applies a robust country selection process and rigorous bottom-up credit selection governed by a proven risk management framework. In addition to financial analysis, BlueOrchard conducts a social performance analysis on all investments based on “SPIRIT”, the firm’s proprietary social performance assessment tool.
Building a financial system that supports sustainable and climate-smart growth has taken the center stage of global efforts to advance and achieve the SDGs. To address the growing investment gap in emerging and frontier markets, urgent and concerted action is needed. For BlueOrchard, closing this gap has been our mission since day one. The company has focused its mission and its investment strategies on empowering people in the developing world since 2001 and has deployed more than USD 5bn in more than 80 markets.
About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager. The firm is dedicated to fostering inclusive and climate-smart growth, while providing attractive returns for investors. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. Today, BlueOrchard provides investors around the world with premium investment solutions, including credit, private equity, and sustainable infrastructure. Being an expert in innovative blended finance mandates, the firm is a trusted partner of leading global development finance institutions. With a major global presence and offices on four continents, BlueOrchard has invested to date more than USD 5bn across 80 emerging and frontier markets, enabling tangible social and environmental impact. BlueOrchard is a licensed Swiss asset manager of collective investment schemes authorized by FINMA. Its Luxembourg entity, BlueOrchard Asset Management S.A., is a licensed UCITS management company as well as a licensed alternative investment fund manager (AIFM) authorized by CSSF. For additional information, please visit: www.blueorchard.com.
The information in this document was produced by BlueOrchard Finance Ltd (“BOF”) to the best of its present knowledge and belief. However, all data and financial information provided is on an unaudited and “as is” basis. The opinions expressed in this document are those of BOF and its employees and are subject to change at any time without notice. BOF provides no guarantee with regard to the accuracy and completeness of the content in this document and BOF does not under any circumstance, accept liability for any losses or damages which may arise from making use of, or relying upon any information, content or opinion provided by BOF in this document. This document may contain references or links to other documents and websites and BOF has not reviewed such other documents and websites and is not responsible in any way in relation to the content of such documents and websites.
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All investments involve risk. We note specifically that past performance is not an indication of future results. Emerging markets impact investments involve a unique and substantial level of risk that is critical to understand before engaging in any prospective relationship with BOF and its various managed funds. Investments in emerging markets, particularly those involving foreign currencies, may present significant additional risk and in all cases the risks implicated in this disclaimer include the risk of loss of invested capital.
The materials provided in this document are for informational purposes only and nothing in this document can be construed as constituting any offer to purchase any product, or a recommendation/solicitation or other inducement to buy or sell any financial instrument of any kind and shall not under any circumstances be construed as absolving any reader of this document of his/her responsibility for making an independent evaluation of the risks and potential rewards of any financial transaction. We note in particular that none of the investment products referred to in this document constitute securities registered under the Securities Act of 1933 (of the United States of America) and BOF and its managed/advised funds are materially limited in their capacity to sell any financial products of any kind in the United States. No investment product referenced in this document may be publicly offered for sale in the United States and nothing in this document shall be construed under any circumstances as a solicitation of a US Person (as defined in applicable law/regulation) to purchase any BOF investment product.
The information provided in this document is intended for review and receipt only by those persons who are qualified (in accordance with applicable legal/regulatory definitions) in their respective place of residence and/or business to view it, and the information is not intended under any circumstances to be provided to any person who is not legally eligible to receive it. Any recipient of information from this document who wishes to engage with BOF in furtherance of any transaction or any relationship whatsoever must consult his/her own tax, legal and investment professionals to determine whether such relationship and/or transaction is suitable.
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