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Global Impact Pool Quarterly Investor Letter

17 December 2019

Specifically, we aim to:

  1. Contribute to the provision of basic goods & services for the underserved including water and health & wellbeing;
  2. Provide for decent jobs with fair employment practices to eradicate poverty;
  3. Support sustainable consumption and production aimed at doing more and better with less, and;
  4. Contribute to abundant clean energy and reduction of CO₂ emissions.


Bearing in mind our mission, there is also the explicit target to generate a market rate financial return.

IMPACT HIGHLIGHTS

 

Financial return

Over the quarter the Global Impact Pool posted a positive return of +0.3% for the FA class, bringing year to date return to +2.3%. The investments in the Agriculture Debt Fund and the Green Bond Fund contributed positively to performance. The Organic Growth Fund detracted from performance.

Portfolio highlights
Most investments continued to develop well over the third quarter of 2019. The GIP-team is working on a new impactful investment which is aimed at financial inclusion by investing in financial companies with innovative business models. We are in the midst of the final due diligence stages and are aiming to participate in the December investment round. This potential investment is aimed at SDG 8: Decent work and economic growth and specifically sub target 8.10: expand access to banking, insurance and financial services for all.

Emerging Consumer Fund III participated in two follow-on investments this quarter: one in WorldRemit, the online-remittances service, and a smaller follow-on investment in Kenyan pharmacy chain GoodLife Pharmacy.

Agriculture Debt Fund continues to deploy capital towards financing and growing agricultural small- and medium- sized businesses with a specific focus on ensuring fair prices and wages for farmers and workers, protecting the environment, and a safe work environment. They have built a diversified portfolio of 66 institutions in 37 core countries, reaching 23.998 farmers.

ESPF 4 had its final closing in the third quarter, after a last round where investors were able to commit capital to the Fund. The full focus for the team is now to put the committed capital to work towards investments in renewable energy and infrastructure projects in Europe.

Organic Growth Fund sold one of its investments this quarter: Marqt. The team has managed to realise an impactful exit, continuing the organic mission of the firm, and supporting employees and other stakeholders. The team realised a small profit on this exit. At the same time two new investments have been added to the Organic Growth Fund: Hari & Co, producer of plant based organic meat replacement products, and Tipa, producer of biodegradable plastic. More on the impact mission of Tipa is written in the ‘Impact Case Study’ in this quarterly letter.

Green Bond Fund continues to be a diversified portfolio of bonds where the proceeds will be applied to finance new or existing projects that have a measurable positive impact on the environment. The portfolio has 94 issuers and 158 issues. Impact is measured amongst others by SDG 7: Affordable and Clean Energy, and more specifically by Greenhouse gas emissions avoided. Through the investment in the Global Impact Pool 11,520 ton CO₂ was avoided, which is equivalent to 1.500 households or 4.600 cars.

For further details on the developments of the funds in which the Global Impact Pool is invested, please see the Fund ‘one-pagers’ at the end of this letter that can be downloaded below. 


[1] Source: Impact of the investment by GIP in Agri Debt Fund and Organic Growth Fund
[2] Source: Impact of the investment by GIP in Organic Growth Fund, based on 490 kilo waste per person per year
[3] Source: Impact of the investment by GIP in the Green Bond Fund

Download our Quarterly

2019, 17 December

Global Impact Pool - Quarterly Report

Download

Disclaimer
Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorized as a management company and regulated by the Dutch regulator Autoriteit Financiële Markten. The Sub-Fund is registered under the licence of KCM at the Autoriteit Financiële Markten and not subject to Luxembourg supervision. The shares of the Sub-Fund are admitted for (public) offering in the Netherlands, the UK, France and Switzerland. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (only for the Netherlands) and the prospectus. These documents of the Fund are available on the website of Kempen.

The Sub-Fund may have investments in financial instruments mentioned in this document and it may at any time decide to execute buy or sell transactions in these financial instruments. The views expressed in this document may be subject to change at any given time, without prior notice. The information in this document not intended and should not be considered as research, an investment recommendation or as an offer and provides insufficient information for an investment decision.

Although the contents of this document have been compiled with the utmost care, and are based on reliable sources of information, no guarantee or warranty is given and no liability is accepted, express or implied, regarding the completeness or accuracy of the contents.

Our team

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