An ethical investment with financial and social performance

Transcription

1 An ethical investment with financial and social performance Finance Avenue November 15th, 2014 Presented by Alex Tack Regional manager for Latin America

2 Creation and mission Alterfin cvba-scrl is a cooperative society created in 1994 by NGOs: , Vredeseilanden, Oxfam Wereldwinkels & Oxfam Solidariteit, FOS,... Banks: Triodos, HBK Spaarbank Meanwhile about private shareholders have joined the cooperative Mission Mobilise capital in the North to support the development of a financial network that is accessible to poor people in the South

3 Board of Directors Composition of board of directors : NGOs Finance sector Private shareholder representatives Independant directors

4 The Alterfin team Management and back office Credit Management Team

5 Capital on Dec. 31 st 2012 on 30/9/2013

6 What happens with our share capital? Alterfin provides credit to two sectors in the South: Microfinance Institutions Exampleof investment: loan/ USD / 36 months/ 8,50% The organisations dispatch our funding into small(micro)credits Sectors: agriculture, trade, services, production, housing,... Sustainable agriculture (mainly fair trade & organic) Exampleof investment: creditline / EUR / 8 months/ 7,00% Workingcapital for prefinancing, gathering, processingand commercialisation of produce Sectors: coffee, cocoa, wine, banana, honey, sesame,

7 Characteristics of our financing Investments <-- --> Gifts Types: loan, guarantee, participation Gifts: dependence, disturbance of market, not scalable Intermediaries <-- --> Final beneficiaries Local initiatives Efficiency

8 Portfolio and number of partners on Dec. 31 st 2012 EUR Nb. active partners Capital Portfolio Alterfin Nb. Active partners on 30/09/2014

9 Geographical scope on Dec. 31 st ,2% Latin America 6,61% 6,69% 6,7% Africa 6,6% Asia 0,8% Middle East 0,7% International 85,24% on 30/09/2014

10 Alterfin around the world Investment of 38 Mio EUR for 116 South partners in 27 countries

11 Portfolio distribution by sector on Dec. 31 st ,8% 4,5% 5,2% 14,0% 5,4% 59,4% 59,4% Microcredit 5,4% Funds 14,0% Coffee 5,2% Cocoa 4,5% Wine 2,3% Honey 2,8% Sesame 0,9% Sugar cane 0,8% Olive oil 0,6% Brazil Nuts 0,9% Quinoa 0,7% Rice 0,7% Soy 0,6% Banana 0,2% Blueberry 0,0% Mango 1,0% Others on 30/09/2014

12 Microfinance: an example Fondesurco (Peru) Rural microfinance in remote areas of South Peru Generally the first institution intervening in a certain area Balance between financial and social return Strong compromise with conservation of the environment

13 Sustainable Agriculture: an example CPC: financing small scale coffee farmers in Southern Laos (SE Asia) 1796 members, 60% of them living on less than 1$/day Selling all their coffee Fair Trade at Coffee Rombouts Support to the farmers: Technical Assistance Benefits for the whole community: investment in health and education

14 Credit Analysis Social criteria Marginalised groups of society Involvement of clients and decision making process Ownership/property and profit question Financial criteria Balance sheet, Profit & Loss account, Cash flows Specific: Microfinance portfolio of micro credits FairTrade sales

15 Fund manager for third parties Alterfin finances organisations in the South Withownressources = withsharecapital of the cooperative Alterfin Withotherressources Alterfin builds up portfolio and monitors investments Generally only for existing clients of Alterfin Calvert Foundation(USA) Fefisol& Fopepro

16 Global outreach on Dec. 31 st 2012 Clients/producers reached by type of living area 64% living in rural areas 36% living in urban areas Clients/producers reached by gender 60% women 40% men Total reach persons and their families on 31/12/2013

17 Alterfin shares Characteristics of investment Social return Accessible and flexible Financial return: dividend Fiscal stimulus for Belgian taxpayers Price Private persons: 62,50 EUR per share Organizations: 250 EUR per share

18 Tax benefits for private investors Taxreduction: 5% of investedmoney in Alterfinfor 5 years (~ extra return of 1% per year) Min. investment 437,5 EUR (7 shares) 21,88 EUR taxbenefit Investment 6.437,5 EUR (103 shares) 320 EUR maximum taxbenefit

19 Dividend in % 4,00 4,00 3,50 3,75 3,35 2,75 3,00 1,50 1,50 1,50 1,50 1,75 1,00 1,

20 Thank you for your attention Visit us on booth 705! Alterfin cvba/scrl Haachtsesteenweg 159/ Chaussée de Haecht Brussels Belgium