FINANCIAL RETURN
GIP achieved a return of -0.8% for the FA share class during the first quarter of 2022, resulting in a return of 18.6% over the last 12 months and an average annualized return of 5.4% over the last 3 years. Since the launch of the fund in the beginning of 2018, the fund realized an average annuallized return of 3.8% for its participants.
Following the excellent performance of GIP during the last quarter of 2021, the return of the fund turned slightly negative during the first quarter of 2022. The core impact portfolio of GIP, which largely consists of private market investments such as Private Equity and Infrastructure, delivered a slightly positive return. The negative return of GIP can mainly be attributed to the Green Bonds allocation, where the rising interest rates on capital markets negatively influenced valuations. Due to the limited allocation of GIP to Green Bonds, as this asset category is mainly used for liquidity purposes, the negative effects on a total portfolio level were limited. By switching to a portfolio of corporate Green Bonds during the first quarter, the management team of GIP lowered the interest rate sensitivity of the portfolio. Towards the future, this change will decrease the negative effects as a result of rising interest rates.
Detailed performance information is presented below. GIP investment team is confident that the current portfolio is well positioned to combine impactful investments with solid financial returns.

Introduction of new share classes per March 1, 2022
On March 1st, the E and F share classes were introduced, effectively replacing the B and D share classes. The changes will not impact (the terms of) current positions in existing share classes.
While the F share class will essentially be a replica of the D share class (capital immediately ‘called’ from investors, max. investment of €1 million), the E share class (accessible with investments larger than €1 million) will have a commitment structure. This commitment structure will allow the investment team to call capital efficiently from clients based on capital needs of the portfolio. As a result, the investment team is able to manage liquidity in the portfolio which is beneficial for financial and impact returns and thus in the interest of existing and new participants.
A 1.5% Anti-Dilution Levy will be charged when investors commit new capital to GIP. This one-off charge is to compensate existing participants for the dilution of their holding, triggered by new capital inflows and subsequent commitments to underlying funds.
Please reach out to your point of contact within Van Lanschot Kempen for additional information regarding the above.

PORTFOLIO DEVELOPMENTS
GIP continued its mission to pool capital and scale impact on behalf of its participants during the first quarter of 2022. Assets under management slightly declined to €146 million at the end of March 2022. This decline can be attributed to a decline in the value of the investment portfolio. On a net basis, there have been inflows of capital for GIP during the first quarter of the year. We are furthermore proud to announce that an additional amount of €74 million has been committed to GIP in March 2022, of which approximately 10% was called by GIP shortly after the end of the quarter.
GIP’s portfolio management team has further enhanced its promising pipeline with new investment opportunities. During the first quarter of 2022, the team has been successful in deploying a significant amount of capital. The most notable addition to the portfolio is an investment through an Indian asset manager, which specializes in reducing the financial including gap in India by providing loans to subordinated householders or SMEs. In addition, GIP has committed additional capital to an existing partner, which is investing early in fintech companies that drive financial inclusion in underserved emerging markets.
The overview below provides a brief summary of the most important developments in the portfolio this quarter per individual Impact theme.

Basic needs and well-being: The investments within this theme continued to make significant progress during the quarter. In the previous quarterly update we mentioned that an investment partner of GIP had increased its investment in Goodlife Pharmacies by participating in a new financing round. The company has shown exponential growth in recent years and developed into the largest pharmacy and healthcare chain in East Africa. This strong growth has made the investment partner decide to partially reduce its stake in the company during the first quarter of 2022. With this partial sale, the investment partner has recoved 49% of the initial investment, while still holding a majority stake in the company.

Investments within the theme of SME development and decent work developed well during the quarter. In the first quarter of 2022, one of the investment partners of GIP increased its investment in BIMA, a company that focuses on offering digital health and life insurance in several countries in Asia (including Bangladesh, Cambodia, and the Philippines). BIMA aligns perfectly with GIP’s goals for financial inclusion in emerging markets by providing essential insurance and health services to low-income customers. Currently, approximately 3 million undeserved consumers in emerging markets are reached with these impactful services. The same investment partner has also added a new name to the portfolio: HD Bank, a consumer bank operating in Vietnam with a strong focus on the retail and SME-segment of the market. This company also focuses on financial inclusion, for example by offering products that are affordable for consumers with a low income.
GIP’s investment partner that focuses on early-stage companies within this theme has taken an interest in Acasa, a Latin America based ‘proptech’ company. The property market for homewoners in this region is full of inefficiencies, including low levels of liquidity, little opportunities for bank loans, low levels of transparancy and often a time-consuming process to buy or sell a house. Acasa focuses on facilitating the buying and selling process of (small-scale) real estate for homeowners.

One of GIP's investment partners within the Circular economy theme focuses on providing working capital to (cooperatives of) smallholder farmers in developing countries. During the first quarter, this investment partner provided loans to five cooperatives in Togo and Burkina Faso (cashew nuts), Kenya (macadamias) and Uganda (coffee and cotton). Now that the coffee season in Costa Rica and Honduras has come to an end, the investment partner has started financing farmers in Peru (cocoa) and Bolivia (quinoa). In Asia, loans were provided in Indonesia and India (soybeans, warehousing and financial services aimed at agriculture).

With its investments within the Climate and energy transition theme, GIP contributes to the transition to more
sustainable energy sources. During the quarter, one of the investment partners of GIP exposed to this theme continues to make good progress with the development of wind farms and solar energy parks. During the first quarter of 2022, capital was called for both funds from the existing investment partner, thus increasing the exposure to the Climate and energy theme. This capital was used, among other things, to finance a solar power plant in Italy. These investments will soon add a significant amount of renewable energy capacity to the energy network.
The impact case for this quarter focusses on Ampersand, a company from our investment partner within this theme with a focus on early-stage companies. Ampersand is tackling fuel consumption and CO2-emissions through the electrification of motorcycles in Rwanda.