Investing in Sustainable Development
I ti i S t i bl D l t
TBLI Europe 2009 12‐13 November 2009
TBLI Europe 2009 12‐13 November 2009
Investing in Sustainable Development : The AVENIR Way
Hamid TAWFIKI Chief Executive Officer
Sustainable
Development
Development in
Emerging Markets
Microfinance

FACT 1 Long term key driver for sustainability issues: Rapid demographic change
Larger population with predominance of LDC… ….that becomes Older and Urban”
“Poverty, Economic Development and Climate change are inter‐dependent issues”
Poverty, Economic Development and Climate change are inter dependent issues
2

FACT 2 Money’s flows : The exhaustion of the traditional dichotomy
Public Deficit
f Fundamental issues
LT
Fundamental
projects
chasing
social return
ST & MT
Private Savings Financial Returns
Investments
chasing
chasing
financial return
3

FACT 3 Current state of Sustainability Investing : What else ?
Dominated by two different and well‐established bottom‐up processes
y pp
Thematic
SRI investments
Traditional Asset Allocation
Global Earnings and
Macro valuations
4

Sustainable Development Era : New reality and New requirements
Sustainable Development issues are at the heart of all Government Stimulus Plan
with an increasing awareness that they must be tackled seriously.
g y y
Private Investors (PIs) are becoming essential today for financing Sustainable
( ) g y g
Development (SD).
PIs need guidance & assistance to understand the complexity, the intricacy and the
inter‐dependency of SD related sub‐sectors. Why, Where, How?
Existing SD investment offerings need to be complemented to fulfill new PIs
requirements : framework & knowledge, meaning & performance.
equ e e ts a e o o edge, ea g pe o a ce
5

Sustainable Development Investing: The AVENIR Way
Make an IMPACT by striking the right balance between Sustainability and Development
Global Sustainable Development Space
OBJECTIVE
Low‐Income
Factor Driven
Factor Driven
ystem Vitality
y
Economies
Environment Health Index as an
Ecosy
indicator of Economic Development
6
Logarithmic
Value
5
pita
GDP per Cap
4
High‐Income
Middle‐Income Innovation Driven 3
Efficiency Driven Economies 0 50
Environmental Health Index
100
Economies Source: AVENIR , Yale University, World Bank
Source : AVENIR Analysis
Environmental Health and Safety 6

Sustainable Development Investing: The AVENIR Way
Sustainable Development Investing: The AVENIR Way
The three prong approach that lies beneath
Address “Development" in addition to “Sustainability“ because developing &
Development Sustainability
emerging markets will take a bigger role in the global economy.
Cover the entire spectrum of interrelated factors affecting Sustainable
Development, such as poverty alleviation, environmentally sensitive and efficient
resource utilization, as well as global economic and financial imbalances.
Identify the main global drivers of Sustainable Development in terms of policies
and environmental conditions, assess countries accordingly, identify priorities
across sectors and consequently spot investments that are most likely to
p
contribute to sustainable development
7

Sustainable Development Investing: The AVENIR Way
Sustainable Development Investing: The AVENIR Way
A concrete case of Energy Investing
Measure the extent to Draw investment Select companies
which a country has the implications and determine based not only on
necessary attributes in place to industries that currently fundamental but also if
achieve it
hi its energy policy li operate in conditions that are
t i diti th t they fit the Sustainable
th fit th S t i bl
objectives favourable to sustainable Development priorities of
development the country in which the
company operates
p y p
Governance Oil & Gas
Macro‐Economy Materials
Health & Safety Utilities
Objective:
Energy Infrastructure Industries
Double Impact
Energy Security Infrastructure
f
Energy Equity Agriculture
sustainability Return
Environmental Factors …
8

Sustainable Development Investing: The AVENIR Way
Sustainable Development Investing: The AVENIR Way
A concrete case of Energy Investing : Avenir Energy Impact Fund (AEIF)
AEIF has three distinguishing features:
It tackles the issues of pollution, depletion and energy poverty by focusing on
implementable solutions that work and are economic in today's world.
p y
It uses a proprietary top‐down process to select countries with necessary attributes
in l
i place to achieve their energy policy objectives and h
hi h i li bj i d hence represent i investments
opportunities in energy efficiency and in practical clean energy solutions.
It invests in public stocks, largely in emerging markets (more than 60% of the
portfolio).
9

Investing in Sustainable Development
THANK YOU
THANK YOU
Avenir Global Investment Advisors S.A 14 Avenue Reverdil
CH-1260 Nyon
Switzerland
Hamid Tawfiki
Chief Executive Officer Tel:+41 22 365 44 31
hamid.tawfiki@avenir-sa.com Fax:+41 22 365 44 30
www.avenir-sa.com
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