Impact Investing Portfolio (English)


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An impact investing portfolio for small (income) investors in public equity suggesting impact sectors and checklists for sustainable best-in-class companies and investment products (etp's, funds) and impact.

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Impact Investing Portfolio (English)

  1. 1. Impact Investing Nieuws Impact investor & blogger Impact Investing Portfolio©
  2. 2. Small investor Focus on income and value Neutral investors profile (do the test at your bank) Avoid currency risk Invest in Public equity & Spread over bonds, stock, index trackers or exchange traded products and investmentfund. Private equity is an option for small investors as lending money through crowdfundingplatforms often comes with risk analyses For impact Investing in the Netherlands. I suggest: Geldvoorelkaar, Symbid, Crowdaboutnow, Oneplanetcrowd, Seeds, Share2start en Wekomenerwel en Greencrowd: invest in solarpanels for buildings with a societal purpose (schools, hospitals, government buildings). Investors profile
  3. 3. Impact investing or mission related investing is: Investing in activities with a social and / or environmental impact and make a profit. Impact Investing is -because it aims at making a profit- 'financially sustainable' and can -in time- (re)finance and scale up social and or environmental impact weather they are doing less harm or -preferably- doing better Impact Investing
  4. 4. The investment suggestions are often Dutch public equity or global etf's Income and Work Domestic: Kempen SenSe Fund. Global: Oikocredit, Triodos Fair Share Fund, ASN-Novib Microcredit Fund, FMO bonds, Incofin & Alterfin (Belgium)... (Access to) Financial services (Microfinance, -mortgages, -insurance, check out financials investment policies!) Oikocredit, Triodos Fair Share Fund, ASN -Novib Microcredit Fund, FMO bonds, Incofin & Alterfin (Belgium)... (Access to affordable) Food (quantity & quality, LOHAS**) Triodos Sustainable Trade Fund (Access to affordable clean) Water (conservation, filtering ... ) Water Indices and etf's, ASN Milieu & Water Fonds, WaterschapsBank... (Access to) Healthcare (affordable care, focus on fighting diseases in developing countries and linked to poverty, orphandrugs...) Access2Medecine Index, health etf 's, vaccinebonds... Education (private education, vocational training, professionals education...) Basic Needs
  5. 5. Sectors 1 Sustainable Forestry: etf 's, Triodos Groen Fond, specialised funds. Sustainable property and affordable housing: energy & water saving, sustainable construction / renovation, (health)care real estate ...) GRESB / NAREIT index etf 's (Triodos Sustainable real Estate) investment Unibail – Rodamco, ASR bonds, Triodos Groen Fonds ... Energy: (Renewable, clean energy, energy saving ... ) IBRD and EIB bonds, mutual funds, clean energy indices (beware of nuclear energy), etf's, Green Energy Transition Scorecard gives insight in rapidly growing sectors/regions Carbon emissions reduction: cleantech, greentech, (low(ering) emission companies, the automotive industry through it's investments ...) Low Carbon etf 's, Mutual funds, Triodos Renewables Europe Fund. Recently issued the Toyota Green Bond based on (stringent) Californian emission criteria.
  6. 6. Sectors 2 (Access to) Internet (education, (net)works, information & transparancy, coöperatives ...) (Access to) Mobile phone & payment services Recycling & Environment (resource conservation, waste management...) ASN Groenprojectenfonds , Triodos Groen Funds... Raw materials that are essential for high-impact activities such as rare metals for mobile telephony and IT...
  7. 7. Sectors 3 Social enterprises FMO bonds (Development Cooperation), GIIRS, B Lab certificate (U.S.), Fair trade Triodos Sustainable Trade Fund Emerging Markets etf's per continent (some U.S. $) Low income regions ... FMO bonds (development cooperation) Community development ... BNG Bonds and WaterschapsBank bonds (for the Netherlands) (Access to) Healthy lifestyle (sports & exercise, wellness, social networks ...) (Access to) Culture and society (property) Triodos Cultuurfonds in the Netherlands
  8. 8. Checklist 1 Impact awareness in mission, vision, strategy, tactics preferably with SMART policy plans. Impact R&D: strategy and activity (internal and external); Impact is part of the Investor relations communication; CSR & ESG policy: accountability practice, performance transparency and score (in its sector)? ESG implementation in the supply chain? Presence in sustainability Indices? (DJSI, Footsie4Good, Vigeo/NYSE, Global Compact, other, ESG reports ...) Presence in Sustainable, Responsible, Ethical Funds? (check at Stock database) Doublecheck by googling the company name & accusation, allegation, lawsuit, fine, conviction etc.
  9. 9. Checklist 2 Benchmarks: CSR and/or ESG benchmarks, Carbon and/or Water footprint. For the Netherlands, CO2 & water etc. reduction, recycling standards, waste management...; (Inter)National governments (policy, compliance, facilitation, promotion); Robeco Country Sustainability ranking, SolAbility (S. Korea); NGO's signals and response (human rights, labor conditions, local communities, land grabbing, environment & biodiversity protection; Stakeholders dialogue, theme's and response;
  10. 10. Impact sector Impact proposition? Impact metrics Impact return on investment Financial return on investment Business model Growth strategy Checklist crowdfunding & private equity
  11. 11. The ultimate dilemma of the impact investor is that the impact of a sustainable company's impact activity can turn out negatively when compared to the effects of their business on a global scale. But when multinationals go sustainable their/that impact can be enormous... Example: The automobile industry is the biggest investor in clean tech with it's investments in electric cars. Transport & traffic cause 23% of CO² emmissions and the emissions keep growing. Example: Mars company helping poor cocoa farmers and supporting a Symbioscience division for life science and mens health, but as it's core business is manufacturing sweets adding to the worlds obesity problems causing death, (chronic) disease and societal costs. Dilemma
  12. 12. A smart investor spreads risks over funds and sectors which in my opinion means chosing impact sectors and consequently their best-in- class companies and index trackers or exchange traded funds (due to the wide spread and the low costs). Etf's often list large cap companies who are usually doing the most interesting things impactwise, thus inspiring their competition to follow or even outperform them. In an general sustainable etf or mutualfund the impact effects of impactful companies can be undermined by the overall effect of coompanies in non impact sectors. In the Netherlands I expect only Oikocredit ans theme investmentfunds offered by TriodosBank, ASNBank and RobecoSAM offer (more) assurence the allover impact is positive. Practical choices
  13. 13. Contact details: Linkedin AlcanneHoutzaager Twitter @Alcanne