ABN AMRO and FMO launch a ‘next step’ in Impact Investing
As a clear indicator of Impact beginning to reach accessibility and scale, our partners ABN AMRO and Dutch development bank FMO have announced an exciting breakthrough: the new FMO Privium Impact Fund, unveiled at Pymwymic Impact Days 2016. For the first time, Private Banking clients of ABN AMRO MeesPierson can co-invest with FMO in loans to private sector companies in emerging markets. By co-investing through the Fund in Sustainable Energy, Financial Services, Food, Water, and Infrastructure, ABN AMRO MeesPierson clients now have a direct path to impact in emerging markets, and have benefit of FMO’s 45 years of development finance expertise.
The FMO Privium Impact Fund offers financial returns with regular liquidity while generating positive impact, measured through two overall indicators: job creation (direct and indirect), and the avoidance of greenhouse gas emissions. Specific sectors also have specific impact targets, such as numbers of households served with energy. As there is significant unmet demand for long term finance in emerging markets, and with the business volumes that FMO manages, the fund has great potential to scale. The Fund is managed by Privium Fund Management.
During Pymwymic Impact Days, ABN AMRO Managing Board Member Caroline Princen, affirmed “The key is bringing together our strengths. At ABN AMRO, we see a growing demand among our clients for Impact Investing possibilities and FMO has a huge experience in the field of Impact Investing”. Nanno Kleiterp, CEO of FMO added “By providing a loan to a local bank in Bangladesh, for example, this bank has the opportunity to offer credit to more local SMEs. This increases the chances of these entrepreneurs to be successful and to create jobs within their companies. So one loan does not only help the local bank, but an entire community. It is fantastic that individual investors can now share in creating that impact.”
ABN AMRO is a longtime partner to Pymwymic. According to Solange Rouschop, Global Head of Services and Sustainability, the fund is “a solution we are very excited to be able to offer to our advisory clients, allowing them to diversify their portfolios and contribute to real impact in emerging markets. Sustainability is an integral part of ABN AMRO’s long-term strategy and now the bank provides its clients an innovative product that secures a financial return while creating a positive impact.” “This product has scalability and accessibility, it’s really unique. We are very proud of it”, adds Princen.
At Pymwymic, we recognise the significant breakthrough that the FMO Privium Impact Fund provides our community, and congratulate the leadership of ABN AMRO and FMO as they seek to scale impact, and help clients to take the next step and put their money where their meaning is.
The FMO Privium Impact Fund is available for advisory clients of ABN AMRO MeesPierson. More information can be found at: www.fmopriviumimpactfund.nl .