funds for good - eib institute...2019/04/18 · france our microfinance partners local impact...

F U N D S F O R G O O D

THIS DOCUMENT IS FOR PROFESSIONAL INVESTORS ONLY

FUNDS FOR GOOD PHILANTHROPY OFFERS LOANS OF

HONNOR AND FREE COACHING TO JOBLESS PEOPLE

WILLING TO START THEIR ENTREPRENEURIAL PROJECT

Charles Adam

Gesves

THIS IS WHAT WE WANT

A RESPONSIBLE ECONOMIC MODEL

GENERATE VALUEIN ORDER TO DONATE IT

50% OF

OUR OWN

PROFITS

MIN 10% OF OUR

OWN

REVENUES

25% OF

OUR

WORKING

TIME

WE DONATE

TO A SOCIAL PROJECT

OUR BUSINESS MODEL

OUR TEAM

PATRICK

SOMERHAUSEN

CEO

DOMINIQUE

EEMAN - CA

JEAN-FRANÇOIS

SCHOCK - CA

PIERRE-OLIVIER

BECKERS - CA

DOMINIQUE

EEMAN - CA

JEAN-FRANÇOIS

SCHOCK - CAPIERRE-OLIVIER

BECKERS - CA

MICHEL BERTRAND

COO

MAXIME DESAIVE

BUSINESS DEVELOPMENT

NICOLAS

CROCHET - CEO

PATRICK

SOMERHAUSEN

CEO

EMILIE SMET

MARKETING &

PHILANTHROPY

KARINE BECKERS

HEAD OF

PHILANTHROPY

OANA MIJA

PHILANTHROPIC

OPERATIONS

LUDWIG FORREST

FRBJEAN-CLAUDE

ETTINGER

LUC WILLEMYNS

SACHA HENDRISON

BUSINESS DEVELOPMENT

OUR PARTNERSHIPS

OUR SOCIAL BUSINESS

GRZEGORZ JACUBOWSKICRAFTMAN

A VIRTUOUS CIRCLE

BRUSSELS WALLONIA FLANDERS

FRANCE

OUR MICROFINANCE PARTNERS

LOCAL IMPACT

FLANDRE-OCC7

FLANDRE-OR27

ANVERS20

LIMBOURG5

LIÈGE11

LUXEMBOURG1

NAMUR4

HAINAUT13

BW 2

BF 165

FRANCE3

Bilan 2013-2017ACHIEVEMENTS @ END 2018

>406.000€DONATED

>169.000€REIMBURSED

& RELENT

2.500€ =

AVERAGE LOAN

OF HONNOR

157ENTREPRENEURS

FINANCED

SPLIT

43%57%

195JOBS CREATED

3% DEFAULTS

Bilan 2013-2017LAST 12 MONTHS*

67ENTREPRENEURS

FINANCED

# FFG HOURS

1900

50%COACHED &/OR MET

*To may 2019

# PERSONS INVOLVED

23

# CREDIT COMITEES

36

OUR FUTURE IMPACT

1 BILLION AUM 500 NEW ANNUAL LOANS

FUTURE IMPACT REGIONS

THE NETHERLANDS LUXEMBOURG

WRAP UP

FUNDS FOR GOOD PHILANTROPY

Funds For Good contributes to those millenium goals.

Funds For Good Philantropy offers loans of honnor and coaching to people having more ideas than money.

Funds For Good S.A. donations are audited by Forum Ethibel.

http://www.fundsforgood.eu

THE COMMUNITY FOR GOOD

http://www.fundsforgood.eu/

THE FUNDS RANGE

FFG SICAV

THEMATIC EQUITIES

100% EQUITY FUNDS FLEXIBLE FUNDS

LOW RISK

MODERATE RISK

-72% +29%

SUSTAINABLE PORTABLE ALPHA EUROPEAN EQUITY FUND

SUSTAINABLE GLOBAL FLEXIBLE ALLOCATION FUND

EUROPEAN EQUITIES

-80% +29%

SUSTAINABLE EUROPEAN EQUITY FUND

GLOBAL CLEANTECH EQUITIES FUND

INVESTMENT MANAGER SELECTION

1

Quantitativeanalysis

2

QualitativeAnalysis

3

FFG’s ESG integration

analysis

4

Market test with

investors

5

Negociations

6

Fund launch

PricewaterhouseCoopers Banque de Luxembourg

DEPOSITARY AND PAYING AGENT

AUDITOR

INVESTMENT MANAGERFFG SICAVLuxembourg

domiciledUCITS 5

Daily liquidity

MANAGEMENT COMPANY

Mandate awarded byFunds For Good

MDO Management Company*

CENTRAL ADMINISTRATION

European Fund Administration

DISTRIBUTION COORDINATOR

Funds for Good S.A.

SRI POLICY & IMPACT

Funds for Good S.A.

APPLIES

FFG SICAV STRUCTURE

* As from summer 2019

SRI POLICY

EXCLUSION

EXCLUSIONS POLICY: 163 COMPANIES TO DATE

PRODUCT BASED

Weapons:

– Unconventional weapons producers

– Companies selling to countries subject to investments restrictions

Tobacco producers

Thermal coal:

– Mining companies or energy producers with >30% revenues from thermal coal

CONDUCT BASED

Human & individual rights violations

Severe environmental damages

Acts leading to unacceptable greenhouse gas emissions

Gross corruption

Other serious violations of fundamental ethical norms

EXCLUSIONS: EXAMPLES

ESG POLICY

ENVIRONMENT

CARBON FOOTPRINT REDUCTION

SOCIAL

BETTER LABOR MANAGEMENT SCORE

GOVERNANCE

VOTING RIGHTS POLICY

ESG POLICY: ENVIRONMENT

CARBON FOOTPRINT REDUCTION

EQUITY PORTFOLIO FOOTPRINT MIN 20% < EQUITY BENCHMARK

DETAILS

Source: MSCI CarbonMetrics

Targets:

– Carbon emissions:

• Scope 1: all direct greenhouse gas emissions

• Scope 2: indirect greenhouse gas emissions

• Defined by the Greenhouse Gas Protocol (GHG Protocol)

– Carbon intensity:

• Scope 1 + Scope 2 emissions over TTM sales

AVERAGE SCORE: 78% REDUCTION

ESG POLICY: LABOR MANAGEMENT SCORE

INVEST IN COMPANIES WITH BETTER MANAGEMENT SCORE

2 WAYS:

– EQUITY PORTFOLIO SCORE MIN 10% > EQUITY BENCHMARK

– EXCLUSION OF 5% WORSE COMPANIES FROM UNIVERSE

DETAILS

Source: Thomson, MSCI ESG Research, company disclosure

Targets: Companies facing workflow disruption due to

– Labor unrest

– Reduced productivity due to poor job satisfaction

Integrated data:

– Regional exposure

– Size of workforce

– Corporate restructuring/layoffs

– Workforce policies

– Labor-related controversies

ESG POLICY: GOVERNANCE

Funds For Good & all its investment managers are signatories to UNPRI

VOTING RIGHTS

FFG voting rights are implemented through our investment managers

Plan to implement them directly

FFG GLOBAL FLEXIBLE SUSTAINABLEFLEXIBLE FUND – MEDIUM RISK

OBJECTIFS DU FONDSFUND OBJECTIVES

LONG TERM CAPITAL GROWTH

CONTROL VOLATILITY

ASSET CLASS DIVERSIFICATION

INVESTMENT MANAGER

o >10Bio AUM

o Since 1985

o 100% owned by Banque de Luxembourg

o Fund Manager: Guy Wagner, CIO of BLI – Banque du Luxembourg Investment S.A.

94% 100% 100%

OBJECTIVE

0% 100%

EQUITIES

BONDS

GOLD

CASH

40%

0% 100%

0% 100%

0% 100%

90%

5% 15%

5% 15%

2% 30%

DELIVER AN ATTRACTIVE LONG TERM REAL RETURN THROUGH ASSET

CLASS FLEXIBILITY & SECURITY SELECTION

BLI SRI POLICY

BLI’S 4 PILLAR ESG POLICY ALSO INTEGRATED

CONTROVERSIES

Human Rights & UN Compact Compliance: companies that fail to comply are removed from investment universe

EXCLUSION LIST

Cluster munitions, anti-personal mines, landmines, depleted uranium, biological/chemical weapons

PROXY VOTING

BLI applies ISS Sustainable voting policy

ENGAGEMENT

BLI engages with companies about ESG related issues during company visits.

ASSET CLASSES

EQUITIES

0% 100%

o Relatively healthy economic conditionso Low interest rateso Robust earnings growtho Supply / demand situation

o High valuationso Changing fiscal / monetary policy mixo Rising commercial & geopolitical tensions

RISKS

o Return of inflationo Recessiono Protectionism

POSITIVE NEGATIVE

41%*

*30/3/19

EQUITIES

GOVERNMENT BONDS

Potential « safe heaven » status in times of economic & financial stress

o End to secular stagnationo return to inflation

POSITIVE NEGATIVE

RISKS

0% 100%

BONDS

4,5%*

*30/3/19

Low / negative real yields

GOLD

o High debt levelo Favorable supply/demand situationo Low real yieldso Geopolitical riskso Little scope for conventional policy to

respond to next economy dowturn risk of even more aggressive

unconventional policies

o Federal Reserve tightening

Strenghtening US (world) economy leading to Federal Reserve (or other central banks) tightening more agressively

RISKS

0% 100%

GOLD

8,5%*

*30/3/19

PERFORMANCE OF UNCORRELATED ASSETS

Source: Banque de Luxembourg Investments sa

The indicated performance is historical and holds no guarantees for future performance.

-33%

-18%

-6%

-19%-22%

-55%

-15%-12%

-5%

-12%-7%

0% 0%5%

11%16%

5% 4%

-2%

4%5%8%

-5%

1%

17%

26%

5%8%

-6%

12%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

1987 crash Iraq invadesKuwait (1990)

Asia crisis '97 Russia / Long-term CapitalManagement

crisis '98

11 September'01

Globalfinancial crisis

'08

2010 Eurozone crisis &

flash crash '10

U.S. sovereigndebt

downgrade'11

Tapertantrum '13

China worries'15

S&p500 index Us treasurieS gold

ALLOCATION

HISTORIC ALLOCATION

31/12/18

GEOGRAPHICAL BREAKDOWN

BLI – Banque de Luxembourg Investments

SECTOR BREAKDOWN


MARKET CAPITALISATION


PERFORMANCE

RECOVERY TIME

Source: Morningstar Direct. FFG Global Flexible Sustainable is included in the Flexible Allocation Universe of Mornigstar

The indicated performance is historical and holds no guarantees for future performance. All costs and management fees are included in the calculation

of the historical performance except for entry and/or exit costs.

<2,5years

>7 years

PERFORMANCE SINCE FFG LAUNCH

Morningstar Direct au 31/03/19

POSITIONNING


DURABILITÉ

ESG SCORES II

INTENSITE CARBONE PONDEREE

LABOUR MANAGEMENT SCORE PONDERE

FFG GLOBAL FLEXIBLE SUSTAINABLE: 60,74MSCIW ACWI: 211,4

DIFFERENCE: -73,3%*

FFG GLOBAL FLEXIBLE SUSTAINABLE: 6,62MSCIW ACWI: 5,11

DIFFERENCE: +28,1%*

*31/12/18

TECHNICAL DETAILS

TECHNICAL DETAILS FFG GLOBAL FLEXIBLE SUSTAINABLE

SHARECLASS

ISINTICKERBLOOMBERG

MIN.INVEST

MANAGEMENTFEE

MAX ONGOINGCHARGES

R ACC LU1697917083 FFGFSRA LX 1.25% 1,60%

R DIS LU1697916861 FFGFSRD LX 1.25% 1.60%

C ACC LU1697917240 FFGFSCA LX 0.95% 1.30%

C DIS LU1697917323 FFGFSCD LX 0.95% 1.30%

I ACC LU1697917166 FFGFSIA LX 500.000€ 0.65% 1.00%

QUEST CLEANTECH FUNDTHEMATIC EQUITIES FUND

THE FUND : STRUCTURE & CHARACTERISTICS

100% EQUITIESSMALL & MID CAPS

GARP STYLECONCENTRATEDPORTFOLIO(20-30 STOCKS)

DYNAMIC PROFILEBUY-AND-HOLD

PRIVATE EQUITY

CapricornCleantech Fund

CapricornHealth-tech Fund

CapricornITC Arkiv

MIXTE

Quest forGrowth

QUOTED FUND

QuestCleantech Fund

o € 350 MIO AUM

o MANAGER FOCUSED ON CLEANTECH, HEALTH-TECH & ICT

FUND MANAGER

YVES VANEERDEWEGHo 20+ years experience as portfolio manager

o @ Capricorn since 2005

OLAF CÖRPERo >10 years equity experience

o @ Capricorn since 2012

CLEANTECHUNIVERSE

CLEAN TECHNOLOGIES UNIVERSE

TECHNOLOGY-BASED PRODUCTS AND SERVICES THAT PROVIDE CLEANER OR MORE EFFICIENT USE OFTHE EARTH’S NATURAL RESOURCES, SUCH AS ENERGY, WATER, AIR AND MATERIALS.

energy supply

deforestation

pollution

CO² emissions

loss of biodiversity

climate change

water scarcity

THEMATIC

3 THEMATICS IN THE FUND

* Chiffres au 31 août 2018

Green building

Clean transport & fuel efficiency

Controls & energy optimisation

Smart grid & energy storage

Energy efficient lighting

Water Management

Pollution control

Recycling & waste management

Agricultural & bio-based solutions

Advanced materials

Wind energy

Solar energy

Biomass & biofuels

Hydropower

Other renewable energy

ENERGY

EFFICIENCY

RENEWABLE

ENERGY

RESOURCE

EFFICIENCY

PORTFOLIO STRUCTURE

0% 100%

EQUITIES

ENERGY EFFICIENCY

RESSOURCES EFFICIENCY

RENEWABLE ENERGY

FFG CLEANTECH II WILL INVEST IN THE SAME THEMATICS

53%*

*31/03/19

25%*

13%*

90% 100%

0% 100%

0% 100%

0% 100%

CASH

7%*

0% 100%

ALLOCATION

GEOGRAPHY

EUROPE AS A CLEANTECH LEADER

79% EUROPEAN COMPANIES!


SECTOR ALLOCATION

Capricorn Venture Partners au 31/03/19

PERFORMANCE

PERFORMANCE SINCE LAUNCH


TECHNICAL DETAILS

SHARECLASS

ISINTICKERBLOOMBERG

MIN.INVEST

MANAGEMENTFEE

ONGOINGCHARGES

R ACC LU1171478784 QUECLER:LX NO 1.25% 1,73%

I ACC LU1171478941 QUECLEI:LX 250.000€ 0.75% 1,13%

OVERVIEW – QUEST CLEANTECH FUND

FFG EUROPEAN EQUITIES SUSTAINABLEEUROPEAN EQUITIES FUNDS

THE FUND : STRUCTURE & CHARACTERISTICS

100% EQUITIESALL CAPS

BÊTA = 1 VS MSCI EUROPE NR

DIVERSIFIED PORTFOLIO(200 - 400 STOCKS)

DYNAMIC STRATEGYACTIVE QUANTITATIVE

GESTIONNAIRE

o Founded in Boston, MA, in 1986

o Offices in Boston, London, Singapore, Sydney and Tokyo

o 336 employees worldwide

A TEAM OF EXPERTS

John Chisholm, CFACo-CEO, Co-CIO

Malcolm Baker, Ph.D.Director of Research

lnvestmentAnalytics & Data

Global EquityResearch

Equity Portfolio Management

Long-Short Portfolio

Managementlmplementation

24 Team Members 16 Team Members 26 Team Members 5 Team Members 18 Team Members

o 1 PhD o 9 CFA

charterholderso 21 MA / MS /

MPhil / MBAso 15 avg yrs of

experience

o 6 PhDso 9 CFA



experience

o 8 PhDso 13 CFA



experience

o 3 CFA charterholders

o 5 MA / MS / MPhil / MBAs

o 14 avg yrs of experience

o 1 PhD o 4 CFA



experience

Brendan Bradley, Ph.D.Co-CIO

CONSTRUCTION

INVESTISSEMENT PROCESSSYSTEMATIC, OBJECTIVE & COHERENT

INVESTMENT UNVIVERSE

STOCK FORECASTPORTFOLIO

CONSTRUCTIONTRADING

BROAD EUROPEANUNIVERSE

OBJECTIVE RETURNFORECAST

COST EFFECTIVETRADING

6.000 stock investmentuniverse

Bottom-up analysis:Stock forecast relativeto peer group+Top-down analysis:Peer group forecastrelative to world equity

Return forecastsRisk forecastsTransaction costs estimatesLiquidity estimates

Structured tradingprocess

ESG ISSUES AREINTEGRATEDTHROUGHOUT

INTEGRATED FACTORS,ACTIVE RESAERCHAGENDA

APPLICATION OF ESGSCREENS, RISKMANAGEMENT,PORTFOLIO TILTING

PORTFOLIOCHARACTERISTIC, REPORT,PROXY VOTING, WOMAN &MINORITY BROKERAGE,ENGAGEMENT REPORTING

PORTFOLIO CONSTRAINTS

ACTIVE RISK

MAERIAL RISK

SECURITY RISK

SECTOR RISK

COUNTRY RISK

LIQUIDITY RISK

FACTOR CROWDING

HUMAN OVERSIGHT

4% - 6% TRACKING ERRORS

BETA, VOLATILITY & SIZE CONSTRAINED TO MARKET

2,5% ACTIVE WEIGHT (DYNAMIC)

+/- 8% ACTIVE WEIGHT

+/- 6% ACTIVE WEIGHT

TRADING: MAX 20% DAILY ADV, HOLDING: MAX 3 DAYS’ AVERAGE VOLUME

MITIGATE FACTOR CROWDING TRHOUGH DYNAMIC FACTOR WEIGHTING

PORTFOLIO REVIEW, DISCRETIONARY RISK MANAGEMENT

RISK & PORTFOLIO CONTROLS AIM TO MAXIMIZE THE INFORMATION RATIO & REDUCE DRAWDOWNS

+1,32PRICE TO INTRINSIC INCOME VALUEPRICE TO INTRINSIC ASSET VALUEPRICE TO INTRINSIC ASSET VALUE

PREVISION MODEL

VALUE

+0,64MEDIA EFFECTEARNINGS SURPRISERECOMMENDATION CHANGE

GROWTH

+0,17ASSET QUALITYCASH FLOW QUALITYMANAGEMENT BEHAVIOR

QUALITY

+0,11MOMENTUMSMART REVERSALINDUSTRY LEADERSHIP

TECHNICAL

+0,04GLOBAL DRIVERSRISKSMACRO ENVIRONMENT

GERMANY

+0,09PRICE MOMENTUMAJUSTED VALUTATIONPEER MOMENTUM

CAPITAL GOODS

0,00AJUSTED VALUTATIONQUALITYTECHNICAL

GERMAN CAPITALGOODS

COMPANY: KLOECKNER & CO SE

MARKET CAP: USD 1B

COUNTRY: GERMANY

INDUSTRY: CAPITAL GOODS

DESCRIPTION: STEEL & METALPRODUCER ANDDISTRIBUTOR

TOTAL FORECAST + 2,21

PROVEN STOCK FORECASTING MODELANALYSIS OVER 10 YEARS

20%

0%

10%

-10%

-20%

AN

NU

ALI

ZED

EX

CES

S R

ETU

RN

1 2 3 4 5

RETURN TO LOWESTFORECASTED STOCKS

RETURN TO HIGHESTFORECASTED STOCKS

QUINTILE

EXCESS RETURN ACADIAN ALPHA FORECASTS2

ACADIAN SRI POLICY

ACADIAN FIRM LEVEL & INTEGRATED FACTORS

FIRM LEVEL

Acadian was the first quantitative manager to become a Signatory of the PRI in October 2009. The firm has a A+ score

Leading Investor on collaborative action on climate related data disclosure

Participation on PRI Technical Committee to guide annual survey development.

40% of Acadian’s AUM apply RI screens

INTEGRATED FACTORS ON STOCK SELECTION

Management behaviour

corporate governance

accounting practices

Labor Standards

ENGAGEMENT & PROXY VOTING

Partnership with proxy voting agents, Annual Engagement Report

ALLOCATION

GEOGRAPHICAL BREAKDOWN


SECTOR ALLOCATION


MARKET CAPITALISATION


TOP HOLDINGS


PERFORMANCE

ACADIAN’S FUND POSITIONNINGQ1 2019


SIMULATIONS

GROSS PERFORMANCE COMPARAISON

TECHNICAL DETAILS

* Op 31/03/2017

OVERVIEW – FFG EUROPEAN EQUITIES SUSTAINABLE

SHARECLASS

ISINMIN.INVEST

MANAGEMENTFEE

MAX ONGOINGCHARGES

R ACC LU1783237842 1.50% 1.850%

R DIS LU1783237925 1.50% 1.850%

C ACC LU1783237412 1.10% 1.450%

C DIS LU1783237503 1.10% 1.450%

I ACC LU1783237768 500.000€ 0.75% 1.100%

FFG ARCHITECT STRATEGYFLEXIBLE FUND - DEFENSIVE

PROTECT CAPITAL

OFFER REGULAR RETURN

ADAPTED TO LOW INTEREST

ENVIRONMENT

BY DYNAMICALY MANAGING THE

EQUITY EXPOSURE

FUND OBJECTIVES

NEW FFG AS

INFOS TECHNIQUESFFG ARCHITECT STRATEGY – VERSION 2

NEW strategy

Maintain defensive profile

Capture FFG European ES outperformance vs MSCI Europe

No fixed income or uncorrelated investments

Limit equity exposure between 20% and 40%


Acadian European Equity outperformance vs MSCI Europe


Outperformance new fund vs current fund

PORTFOLIO BREAKDOWN

EQUITY FUNDS

+/- 50%

EQUITY

FUTURES

0% 50%

FIXED INCOME

FUNDS

+/- 10%

FLEXIBLE

FUNDS

+/- 15%

UNCORRELATED

FUNDS

+/- 20%

CASH

+/- 5%

EQUITYFUND

90%

EQUITY

FUTURES

60%

CASH

10%

FFG AS 1 FFG AS 2


2018 3Years 5Years 10years

PerformanceNewFFGAS(Rshare) -3,07% 2,89% 4,23% 4,88%

PerformanceCurrentFFGAS(Rshare) -7,20% 0,86% 1,16%

AcadianTotalAlpha 0,50% 5,00% 4,90% 4,10%

90%EuropeanEquityAlpha 1% 4,20% 4,20% 3,10%

MACSEuropeanTotal -0,50% 0,80% 0,70% 1,00%

30%MSCIEurope+70%cash -1,72% -0,26% 1,18% 2,63%

cash -1% -0,80% -0,50% -0,10%

MSCIEurope -4,10% 1,00% 5,10% 9,00%

Net of fees simulated returns to 30/12/2018

INFOS TECHNIQUESOVERVIEW – FFG ARCHITECT STRATEGY

SHARECLASS

ISINTICKERBLOOMBERG

MIN.INVEST

MANAGEMENTFEE

ONGOINGCHARGES

R ACC LU0945616984 CONFGAB 1.50% 1,85%

R DIS LU0945616788 FFGASRD LX 1.50% 1,85%

I ACC LU0945616788 CONFGAC 500.000€ 0.95% 1,30%

AS 2

COMMUNICATION SUPPORT

CLIENTS TESTIMONIALS

49%

8%

24%

19%

REPORTING TOOL

49%

8%

24%

19%

49%

8%

24%

19%

www.fundsforgood.eu

NICOLAS CROCHETCO-CEO

[email protected]

+32 474 750 661

mailto:[email protected]

funds for good - eib institute...2019/04/18 · france our microfinance partners local impact...

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