Responsible Funds, July 11: Climate Change Property Fund, iShares, EU, Hermes

The round-up of responsible funds news

The management of the Climate Change Property Fund, the UK sustainable commercial property fund, is moving from Climate Change Capital to Impax Asset Management. The fund will be called Climate Property Fund LP and managers Tim Mockett and Esme Lowe, will join Impax immediately.

The $118.5m iShares Dow Jones Global Sustainability Screened UCITS ETF (exchange traded fund) returned 23.94% over the year to the end of June, compared to a benchmark return of 24.45%, according to its latest report. Over three months, the return is 5.56% (benchmark: 5.61%). The offering is benchmarked against the Dow Jones Sustainability World Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments & Firearms and Adult Entertainment.

The only microfinance fund approved for public sale in Germany, a product called ‘IIV-Mikrofinanzfonds,’ is getting a new advisor. According to Invest in Visions, the initiator of the fund, its management has been switched from HansaInvest to Monega. Cologne-based Monega is an asset management venture involving German insurer DEVK, a cooperative bank and a Deutsche Bank subsidiary. Invest in Visions said the switch to Monega had to do both with cost-cutting and with Monega’s more sustainable approach to investing. HansaInvest is owned by Signal Iduna, a German insurer. Launched in the fall of 2011, IIV-Mikrofinanzfonds has taken in around €55m in assets, much of which stem from private investors. Since inception, it has gained 5.8%.

The Green Africa Power (GAP) renewables fund has selected Camco Clean Energy and EISER Infrastructure Partners to jointly manage its assets via a five-year contract. The fund, which received initial financing of £95m from the UK’s Department for International Development and Department of Energy and Climate Change makes long-term loans to private renewable power generation projects in the most under-developed countries in Africa. GAP was set up by the Private Infrastructure Development Group Trust, a coalition of development banks to invest in infrastructure and is looking for further financing.The European Union wants to establish a Small and Medium Agribusiness Development Fund (SMADF) to provide small and medium enterprises operating in Uganda with long-term ‘patient capital’ through a €30m public-private investment fund, to be managed by the International Fund for Agricultural Development (IFAD). “Criteria for socially and environmentally responsible investments will be included alongside traditional financial return assessments for investment,” the tender states. The deadline for applications is August 12.

PensionDanmark, the DKK152bn (€20.4bn) Danish labour market scheme, has made an undisclosed allocation to a private equity fund that invests in small- to midsize enterprises (SMEs) in the Nordic countries. The fund is managed by Swedish investment manager Altor and targets Nordic SMEs with turnover of between €50m and €500m. It’s Altor’s fourth such fund, and PensionDanmark said its investments in Altor’s previous funds have generated annual returns of up to 20%. PensionDanmark CEO Torben Pedersen Möger added that beyond providing excellent returns to the scheme, Altor’s funds were helping to boost growth and create jobs. Link (Danish)

TriLinc Global Impact Fund, the US impact investing fund that provides loans and trade finance to small and medium enterprises, has appointed Mauritius-based Barak Fund Management as sub-advisor on investment opportunities in Africa. Barak, founded in 2008, focuses on trade finance for SMEs in the agriculture and commodities sectors.

Hermes Fund Managers, the asset manager owned by the BT Pension Scheme, has held an interim close for the Hermes GPE Infrastructure Fund and its related accounts, raising an additional £210m (€262.5m) from several clients including the Santander (UK) Common Investment Fund (’Santander CIF’). It has now raised over £700m, including allocations from several UK local government pension funds. Peter Hofbauer, Head of Hermes Infrastructure, said: “Paying the right price, aiming to preserve capital and integrating ESG considerations into our investments are essential to our approach and optimising returns.”