“First emerging market ‘impact’ trust targets $150 million” – Investment Trust Insider – May 2, 2017

On May 2, 2017 Investment Trust Insider reported that next month the UK’s first impact investment trust plans to launch its initial public offering (IPO) on the London Stock Exchange to raise $150 million.

According to the article, “(t)he Impact Investment Trust will hold 10 to 15 locally managed private equity investment funds looking to invest in small-to-medium-sized enterprises (SMEs) in developing economies, whose gross national income per capita is under $12,000. It will operate in in ‘high impact’ sectors such as education, healthcare, energy, basic infrastructure, agriculture and financial where the availability of such services and the jobs they bring are sorely needed.”

Of the three sectors, the largest exposures are likely to be in energy, agriculture and healthcare.  Investment limits will be:  45% in any sector; 20% in any single country; 20% of assets exposed to one fund management company; and 15% in any fund.  The trust will also invest in microfinance bonds.

“Impact plc will be managed by Obviam AG, an asset management company that spun out of the Swiss Investment Fund for Emerging Markets and the Development Finance Institution (DFI) of the Swiss Confederation.”

You may read the article on the Investment Trust Insider internet site.