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Global Impact Pool Quarterly Investor Letter

08 December 2020

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 return of +0.2% for the FA class, bringing year to date performance to -1.0%.

Portfolio highlights

The COVID 19 pandemic has still not run its course and the ultimate impact is not clear, though so far the Global Impact Pool and its investments are developing well: a sign that the invested companies are relevant and the specialized fund managers appointed by the Global Impact Pool are selective with their investments in which risks are carefully assessed.

Developments portfolio

The summary below gives a brief overview of the main developments at our impact fund managers this quarter. For more detailed information about the developments in the impact funds in which the Global Impact Pool invests, please refer to the fund one pagers at the end of this quarterly letter.
 
The Emerging Consumer Fund III (ECF III) portfolio has proven resilient in the face of the pandemic. Two of the Fund’s central investment themes, consumer health and digital financial services, have seen an acceleration of growth globally over the period. The number of emerging consumer customers reached by portfolio companies doubled this quarter due to recent addition of PasarPolis Indonesia, a leading insurance company, serving 12.7m unique and active customers in August to portfolio.
The Agriculture Fund continues to invest in growing SMEs that operate along agricultural value chains. The Agriculture Fund provides loans to amongst others cooperations which in turn allow smallholder farmers to access stable and higher-paying markets and therefore provide them with more financial stability. Most portfolio companies have shown resilience, and operations are returning to normal. Loans are being disbursed with caution though, with a focus on existing relationships. Throughout the COVID pandemic continued financing from the fund created liquidity have bought enabled buyers to continue sourcing from the small holder farmers. This was essential to keep the supply chain functioning.
Enhanced Sustainable Power Fund 4 (ESPF 4): Construction of the solar and windfarms in this part of the portfolio continues to show progress. As a reminder all projects are aimed at transitioning the world’s energy supply from fossil fuel sources to renewable resources, which is key to reducing carbon emissions and thereby counter the trend of climate change. Two new solar projects were added in the past quarter.
Accion Quona Inclusion Fund (AQIF) added two new portfolio companies to the portfolio: i) BukuWarung, a bookkeeping and receivables management platform for mid and smaller companies in Indonesia, and ii) Tarfin, a provider of point-of-sale financing to farmers for the purchase of agricultural inputs with extended payment terms to fit farmers’ cash flows. Both business serve consumers and companies which are unable, or have poor access to affordable financial services.
The Green Bond Fund saw a record high number of industrial companies issuing green bonds as well as governments such as Sweden and Germany presenting their inaugural green bonds. An experienced team ensures these are truly ‘green’ by conducting independent assessments, using the full CBI taxonomy on top of the four Green Bond Principles. Both the bond and the issuer are assessed, ahead and after the issuance, including direct engagement with issuers. The portfolio consists of 91 companies / (semi) governments and 167 green bond loans.
The Ecosystem Integrity Fund IV (EIF) focuses on the transition to a sustainable economy that takes place all around us. They call this the new industrial revolution. According to EIF, sustainability is about improving efficiency, functionality and reducing harmful substances in our products, all in combination with lower costs. No new investments were added the past quarter.
 


[1] Source: Impact of investment by GIP in the Agriculture Fund (per Q3)
[2] Source: Impact of investment by GIP in the Emerging Consumer Fund III and the Accion Quona Inclusion Fund, per Q3
[3] Source: Impact of investment by GIP in Green Bond Fund (per Q3)

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2020, 08 December

Global Impact Pool - Quarterly Report

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Disclaimer

Luxembourg. 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 license 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 KCM (www.kcm.nl).
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.

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