This years review is a super summary of events I did follow closely leaving much unmentioned such as the Diversity Investment Movement. Partly because I did not see it materialized in inclusive impact investments …. yet :) A year ago I stated: the understanding of the impact of investing is evolving. 2020 turned out to be a pressure cooker. Lockdown's focusing on essential, vital services reflect the importance of Basic Needs, ImpactTech & Societal infrastructure. Supporting my prediction of a sectoral shake down built on Columbia Threadneedles Social Bond Fund strategy & Bob Eccles, Betti & Consolandi paper 'Contributing to the Global Goals is easier than you think' (MITSloan Review 2018 & Bob Eccles Forbes.com series with detailed (sub)sector and Global Goals analysis.). Traditionally omnipotent companies & sectors fell from grace, the negative price for oil futures made history. 'Healthcare' stock boomed as the vaccine & cure race accelerated and 'Tech' saw shifts in demand & consumption surge its equity. Supply Chain & Risk Management awareness of possibilities over probabilities boomed. NO DIVESTING NEEDED I had no reason to divest when global money markets were crashing and with my portfolio holding it's stance. So no released capital to invest in Corona champions. I wasn't very brave with a minute investment in a HealthTech ETF. Once market's morale bounced back and always a sucker for Impact IPOs I found one this year that was also sold through a SPAC Special Purpose Acquisition Company with very exciting EdTech and even an inclusive impact investment Fintech. And diversification is always a good strategy. Please note that some see the surge of SPACs as a Bubble Warning sign. But for Impact Investors catalytic change mostly has to come from new innovative companies, so why not ride the surf? Also such Inclusive Pre IPO impact investing is of course my cup of tea, so when I found another SPAC holding a vegan company I couldn't resist. Especially as I am an early #BYND Beyond Meat investor. All in all, a quiet investment year for me with the satisfaction that my inclusive impact investing portfolio strategy worked.

1. My Pandemic Proof Portfolio & the State of Impact Investing in 2020
When I used ''Wrapping up the State of Impact Investing”” last year I didn't realize it sounded like I intended to take a
break from Impact Investing Nieuws and developing Tools & Thought Pieces, but that did happen. I foresee Catalytic
Change to come mostly from new innovative companies in BasicNeeds, Impact Tech & Innovative Finance.
So this year I worked on a 4 part online course Impact centered Innovation. We hope to launch Understanding
Impact & Optimizing Impact soon. Part 3 is the Impact Business Model & 4: Marketing & Funding Impact.
This years review is a super summary of events I did follow closely leaving much unmentioned such as the Diversity
Investment Movement. Partly because I did not see it materialized in inclusive impact investments …. yet :)
A year ago I stated: the understanding of the impact of investing is evolving. 2020 turned out to be a pressure
cooker. Lockdowns focusing on essential, vital services reflect the importance of Basic Needs, ImpactTech &
Societal infrastructure. Supporting my prediction of a sectoral shake down built on Columbia Threadneedles Social
Bond Fund strategy & Bob Eccles, Betti & Consolandi paper 'Contributing to the Global Goals is easier than you think'
(MITSloan Review 2018 & Bob Eccles Forbes.com series with detailed (sub)sector and Global Goals analysis.).
Traditionally omnipotent companies & sectors fell from grace, the negative price for oil futures made history.
'Healthcare' stock boomed as the vaccine & cure race accelerated and 'Tech' saw shifts in demand & consumption
surge its equity. Supply Chain & Risk Management awareness of possibilities over probabilities boomed.
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 1

2. NO DIVESTING NEEDED
I had no reason to divest when global money markets were crashing and with my portfolio holding it's stance. So no
released capital to invest in Corona champions. I wasn't very brave with a minute investment in a healthtech ETF.
Once market's morale bounced back and always a sucker for Impact IPOs I found one this year that was also sold
through a SPAC Special Purpose Acquisition Company with very exciting EdTech and even an inclusive impact
investment Fintech. And diversification is always a good strategy. Please note that some see the surge of SPACs as a
Bubble Warning sign. But for Impact Investors catalytic change mostly has to come from new innovative companies,
so why not ride the surf?
Also such Inclusive Pre IPO impact investing is of course my cup of tea, so when I found another SPAC holding a
vegan company I couldn't resist. Especially as I am an early #BYND Beyond Meat investor. All in all, a quiet
investment year for me with the satisfaction that my inclusive impact investing portfolio strategy worked.
IMPACT INVESTING STRATEGIES
ESG mostly Do No, Less Harm & Do Better investing did very well in 2020, building on momentum of years in a row.
S&P “Sustainable funds attracted an estimated USD 45.7 billion in net flows globally during the first quarter of
2020, even while the overall fund universe suffered USD 384.7 billion in outflows as markets plunged in response to
the pandemic”. (Indexology 23nov20)
''Morningstar estimates ESG-focused "sustainable funds" of all types — equity, bonds, commodities, etc. — saw net
inflows of more than $10 billion in capital during the second quarter. That is startling given that the quarter saw
investors pull record amounts of capital out of stock funds”. Megin Thwinn Eastman on investor.com 26Oct20.
After 3Q20 Bloomberg reports “Inflows to ESG ETFs have surged to $22 billion so far in 2020, already about three
times the 2019 total, according to data compiled by Bloomberg”. Mid december there are no 4Q and 20202 total data
yet but there seems no reason to assume this trend halted with stock exchange reporting record highs. (26Oct20)
Especially as the MSCI Researchers analysed ESG bubble risk looking at ESG ETFS and concluded that “If rising
inflows into ESG investing had created a price bubble, we would expect to see rising valuations for these companies (as
measured by increasing P/E ratios). Instead, our return decomposition showed little support for this theory. We found
that outperformance of ESG was mainly driven by companies’ earnings growth and better dividend yields”.
Bloomberg projects … “a nearly eight-fold increase in global ESG ETF and indexed mutual fund assets, from USD
170 billion as of May 31, 2020, to more than USD 1.3 trillion by 2030”. Bloomberg Oct 20, 2020.
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 2

3. IMPACT THEMES
Biodiversity as an investment theme was put on the agenda more prominently in early 2020. A tricky theme as few
people & companies will have a clear understanding of their actions affecting biodiversity (directly). Impact metrics
system IRIS+ has 45 biodiversity & ecosystems metrics, but institutional investors still demand a clear set of metrics.
IMPACT METRICS
Institutional investors will be happy with the merger of SASB, Sustainable Accounting Standards Board and the IIRC
International Integrated Reporting Council as the Value Reporting Framework. Their merger kicks of working closer
with the Carbon Disclosure Project (CDP), Climate Disclosure Standards Board (CDSB) and Global Reporting Initiative
(GRI), as put down in their Statement of Intent To Work Together Towards Comprehensive Corporate Reporting.
Biodiversity is however a solid theme with Agriculture as the top sector in contributing to the Global Goals (Eccles,
Betti, Consolandi) as the worlds biggest food & work provider. Investing in protecting & restoring biodiversity looks
essential. Putting it on the agenda is also a logical move forward & up with ClimateChange & Carbon intensity
solid implementation in Planet Investing strategies & portfolio's. The USA rejoining the Paris Agreement, or Climate
Accord & the EU's Green Deal will boost Planet Impact investing as the Great Reset seems a Green Reset as well.
CLIMATE ACTION
Although GreenBonds emissions were hit in 2Q20, the market has recovered, but will not exceed 2019 emissions.
With now 222BU$ aiming for 267,5BU$ that is -as usual- highly ambitious. But it is only Dec 15th. APG a large* Dutch
pension fund asset manager self described advocate of the green, social and sustainable bond market for years predicts
a record year. Mid November it calculated that total labeled bond issuance (Green, Sustainability, Social) stood at €304
billion in the first nine months of 2020, compared with € 274 Billion issued throughout the whole of 2019.
(*It managed 538 billion euros assets at the end of 2019) And the EU is considering issuing dedicated GreenBonds for
the first time as part of its Next Generation EU Green Deal plans (see below). Boosting demand & market share.
PANDEMIC & RECOVERY
People Investing strategies & themes made their entree with staggering numbers: As if the EU's 1st
€17Billion
Social Bonds emission wasn't big enough, the wannabee buyers expressed interest of almost 14 times was unseen.
“EUs Social Bonds Draw $275 Billion to set Global Demand Record' (Bloomberg Oct 20, 2020). The EU planned to
issue €750 Billion for its Next Generation Recovery Plan but upped it already to €1,8 Trillion.
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 3

4. Corona, COVID investments
The International Capital Market Association (ICMA) rapidly published guidance on issuance of Corona bonds, labelled
or non-labelled thematic Social Bonds, with proceeds earmarked for fighting the effects of COVID-19. Nordea's May
Insights list shows all public issuers. The European Investment Bank raised funds for Financing areas directly related
to the fight against the COVID-19 pandemic. Support to national health authorities and hospitals, laboratory facilities
and networks. Other issuers chose broader response themes. https://insights.nordea.com/en/economics/corona-bonds/
The upcoming economic recession will hit cyclical goods & sectors now on life support for its employment & economic
revenues. But they also compete with Basic Needs, ImpactTech & Societal infrastructure for the different capitals.
Especially human capital needed in healthcare, education & vocational training, digitization and practical & technical
professions, installing & managing ImpactTech and our daily life necessities #infrastructure.
Public Corona Strategies
From a broader perspective the massive, unseen Government interventions have several objectives:
Response: preserving revenue, income, employment … Liquidity to keep economies going
Recovery: loans & payment extensions Idem
Reset: focusing on Green Technology economy, Digitization (EU/WEF) & Resilience Let’s not waste a good crisis
Restart: a more sustainable inclusive economy focusing on essential sectors Leapfrog to the Future
1st
Corporate Healthcare Sustainability Linked Bond
An innovating Sustainability Bond €1.85Bn (8-year, 0% so probably a little lower sales price) was issued by Swiss
pharmaceutical Novartis with social targets: Patient Access to Medicine. (20 September 2020). Specifically Leprosy,
Malaria, Chavas and Sickle Cell disease.
Novartis ESG strategy is to reach +200% patients (numbers) in Low Middle Income Countries with strategic innovative
therapies by 2025 & +50% in patients reached through Global Health Challenges flagship programs by 2025.
It planned to launch more ambitions this year, which I couldn't find but it appointed Marc Boutin, as Global Head of
Patient Engagement & Advocacy on Nov 1st
. Boutin was CEO of the National Health Council (NHC), with 20 years of
international leadership experience in health advocacy, policy and legislation.
Novartis organized a very interesting open access online Co Creating Impact Summit with top Healthcare, Impact &
ESG investing Thought Leaders on december 9th
with an excellent knowledge library in the virtual exhibition.
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 4

5. The Access2Medicine index which rates (large) pharmaceuticals efforts to improve access to medicine for developing
countries describes Novartis Access Principles as 'innovative'. ''Previously, pharmaceutical companies have focused
on establishing access plans only for R&D projects developed in partnership. However, stakeholders now expect
companies to establish access plans for in-house R&D projects too. The new Novartis Access Principles (are) designed
to streamline this process to increase the success of access strategies and to provide accountability for access. …
However, Novartis is the first to commit fully to establishing access strategies across its pipeline regardless of disease
type, signalling a unique willingness to consider access for diseases with high and low commercial potential for use in
countries in scope. https://accesstomedicinefoundation.org/access-to-medicine-index/best-innovative-practices/novartis-access-principles-
to-establish-access-plans-during-development. Bond Specs: https://insights.nordea.com/en/sustainability/sustainability-linked-bonds/
OBITUARY
Ironic that 2020 is also the year the WorldBank decided it would not launch a 2nd
issue for its Pandemic Emergency
Financing Facility aimed at African countries facing Ebola & Influenza outbreaks. Too complex & expensive.
https://www.bloomberg.com/news/features/2020-12-09/covid-19-finance-how-the-world-bank-s-pandemic-bonds-became-controversial
IMPACT BOND DATA
ICMA (the International Capital Markets Association) publishes a Green, Social & Sustainability Bonds Quarterly
Newsletter. Not as often & detailed as the www.ClimateBonds.net communications, but certainly filling the vacuum on
Social Bonds data & updates. ICMA https://www.icmagroup.org/Emails/gbp/2020/10/23/icma-green-and-social-bond-principles.html
VENTURE CAPITAL DATA
I stumbled upon an interesting site on European Venture Capital Dealroom.com which has a weekly newsletter with
many interesting ImpactTech themes. In July 2020 it reported YTD 10% of VC going to impact investments up
0,7% from 2019 (+2,3% 2018, +3,4 2017) in October it published a database on Impact Investment Funds in Europe.
In March it rapidly compiled oversights of the Corona Crash for Start Up sectors (Figure on the next page) and a
Response involved HealthTech Services Landscape. It shows sub sectors AND Companies actively combating
COVID-19 (leads) with their activities, funding & investors from private to public (EIB, EIT grants etc).
A glimpse: Drug & Vaccine Discovery Funding in 2020 7.2 BU$ with also Detection & Monitoring systems 6.2
BUS$ & Testing 1.1BU$ in a landscape (leads) overview of Biotechs, Big Pharma, Antibacterial protection, Access to
research data/tracking population health, Robotics & Drones, 3D printing (PPE personal protection equipment medical
care workers & the population). Link https://app.dealroom.co/lists/14702
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 5

6. Figure: https://blog.dealroom.co/impact-of-the-corona-crisis-on-startups-tech/
Dealroom is 'the popular data provider on startups, growth companies and tech ecosystems in Europe and around the
globe (Israel). It also offers a detailed database with 62 European Impact Investment Funds. The top 11 from 20B
to almost 1B euro. Name; Rank; Series a Funds, Nr. of Rounds – All Time; Deal Value - All Time; Portfolio Size - All
Time; Total Value of current Portfolio not exited; Notable investments; Exits- All Time; % Exit; Total Value of Exits -
All Time; Matching score. Detailed profiles of funds Link: https://app.dealroom.co/lists/14252/list
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 6
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7. PHILANTHROPIC IMPACT INVESTING EUROPE
EVPA the European Venture Philanthropy Alliance published her 2020 Industry Survey ''to better understand
practitioners’ strategies and practices, identify the latest trends and develop new initiatives to unleash the impact
potential of the investing for impact community. Half of investments under 2,5MiOE; Grants Capital 40% & Growth
Capital funding: A: 35% B & C: 53%; People Investing: Poverty, Children, Education & Health; 36% Finance
Innovators investing in SIBs, DIBs or Guarantee schemes. Impact progress monitoring; Trend: Institutional Investors
replacing foundations capital. Impact Metrics ImpactManagementProject 45%, PRI 23%, Social Value 19% EVPA 13%.
A Snapshot and a Deep Dive leaflet. https://evpa.eu.com/knowledge-centre/publications/the-2020-investing-for-impact-survey
https://evpa.eu.com/download/EVPA_survey_2020_general_snapshot.pdf & https://evpa.eu.com/download/EVPA_survey_2020_impact_funds_leaflet.pdf
PHILANTHROPIC IMPACT INVESTING USA
In the US alone 5 charities pledged 1.7BU$ support to their beneficiaries In Wake Of Pandemic partly to be financed
by issueing listed verified Social Impact Bonds (Forbes 13June2020).
At least 40 major US-based and international foundations announced … their commitment to more flexible funding to
help grantee partners meet emergency needs prompted by the COVID-19 crisis. Signatories include the William and
Flora Hewlett Foundation, the Seattle Foundation, the Robert Sterling Clark Foundation, and the Skillman
Foundation, among many other leaders around the country dedicated to advancing social change and supporting
vulnerable populations. (www.FordFoundation.com)
The FordFoundation, the catalyst, issued Social Impact Bonds worth 300Million & 700MillionUS$ with a 2,815%
coupon. That is not a soft loan in a no/low yield market! (30 & 50 years, AAA rating, Moody) It applied its experience
having launched a 273Million US$ bond (2017) to finance its Mission Related Investment Programme.
WK Kellog Foundation pledged COVID grants and issued a 300 million U$? Social Bond with a unknown coupon
(30 years, AAA rating, Moody) and it published its Social Bond Framework (WKKF website)
Andrew W. Mellon Foundation pledged COVID grants and issued a 300 milion U$ bond with a 0,947% coupon (7
years AAA rating, Moody, US03444RAB42)
MacArthur Foundation pledged COVID grants issuing its 1st,
125Milion US$ bond with a 1,299% coupon (10 year,
AAA rating Moody's). Explaining its reasoning in detail: https://www.macfound.org/pages/faqs-covid-19-bond-offering/
Doris Duke Charitable Foundation pledged extra COVID grants and issued a 2,345% coupon $100m bond. (20
year, AAA rating Moody's). It published a Social Bond Framework jn July (DDCF website)
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 7

8. ACADEMIC IMPACT VENTURING Paying off
20 years ago when I was working for Dutch Health Foundations they were formalizing publicity, Public Pelations
commitments for their -considerable- academic research grants. Boosting their reputation as impact catalysts for
healthcare innovation, research & development. Acedemic institutions also seeked reasonable rewards for their
clinical work which made pharmaceutical companies billions in marketing patented products. If there were patent or
financial agreements with academic institutions & researchers and the healthcare industry, the price paid was often
seen as too low.
So I was delighted to read that Rotterdams Erasmus University Medical Centre is a shareholder in Harbour Biomed
which listed in Hong Kong early December. Erasmus MC 4% shares based on patents was valued at 35 Million euro.
It had a majority of shares once which value diminished by large capital investments by financial partners. In 2016 it
sold shares for $10,5 million, also a unique deal for a Dutch academic institution according to the article's researcher.
Eramus MC intends to sell shares in Mid 2021 (sales lockdown) to fund it's core business: education, research & care.
Harbour Biomed has no approved treatments yet, it's all in the all pipeline (Growth stock).
Dutch newspaper article: https://fd.nl/ondernemen/1366190/erasmus-mc-verdient-tientallen-miljoenen-aan-beursgang-biotechbedrijf
https://www.harbourbiomed.com/, Investor Realtions page & News on the IPO: https://www.harbourbiomed.com/news/138.html
MERRY CHRISTMAS & A HAPPY HEALTHY 2021!
Questions, suggestions and requests for research, advice, columns:
https://nl.linkedin.com/in/alcannehoutzaager or twitter @alcanne
Tools & Thoughtpieces, Presentations (Dutch & English) on
https://www.slideshare.net/alcanne/presentations
en ImpactInvestingNieuws blogs in Dutch, sorry.
Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 8

9. Drs Alcanne Houtzaager MA, My Pandemic Proof Portfolio & Impact Investing in 2020 p 9