Privium Sustainable Impact Fund’s objective is to achieve impact and long-term capital growth by making sustainable impact investments. To achieve PSIF’s impact and long-term capital growth objective, the strategy of PSIF is to invest in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments. PSIF invests in developed countries and emerging markets and shall be focused on sustainable impact investments.
Summary
Privium Sustainable Impact Fund (“the Fund”) was created to meet ABN AMRO Private Bank’s needs for sustainable and impact investments within the alternatives asset class.
The Fund has making sustainable investments as its objective and aims to make socially and environmentally responsible investment via its broad mandate and a diversified impact portfolio. To achieve the Fund’s objective, the strategy of the Fund is to invest in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments.
The Fund aims to invest 100% of invested capital in SFDR article 9 funds, and or non-EU funds that make 100% sustainable investments based on proprietary analysis, and companies and financial instruments deemed to be sustainable based on proprietary analysis.
A minimum of 20% of the invested capital of the Fund will contribute to an environmental objective and a minimum of 20% of the invested capital of the Fund will contribute to a social objective. 100% of the Fund’s invested capital will be in sustainable investments. Any ‘other’ holdings in the fund are cash or money market instruments or instruments regarding foreign currency hedging and will make up no more than 25% of the Fund’s total Net Asset Value. Meaning that a minimum of 75% of the Fund’s Net Asset Value will be invested into sustainable investments.
The Fund’s investments are divided into multiple themes and the associated UN Sustainable Development Goals (SDG’s). In its investment decision making, the Fund considers the Principal Adverse Impacts (“PAI”) on sustainability issues as outlined in the Sustainable Finance Disclosure Regulation (“SFDR”).
The Fund has a multi-thematic approach, meaning an investment is categorized under a main ESG theme. The ESG themes currently being targeted include:
- Social Objectives
Financial Inclusion, Education and Social Impact - Environmental Objectives
Renewable Energy and Natural Capital
The themes may change or be expanded on as the investment universe develops. Each theme aims to contribute to several UN Sustainable Development Goals (“SDG”). The impact of the Fund is measured on each SDG using impact key performance indicators.
The fund of fund structure limits the Fund’s direct influence in the underlying investments. Therefore, the Fund has a sustainability due diligence process in place. In its investment decision making process, the Fund considers the PAI on sustainability issues as outlined in the SFDR to assess that (potential) investments do no significant harm while contributing to the sustainable investment objective. In addition to considering the PAI, the Fund investigates the governance quality of the companies, organizations, vehicles, and funds managing the ultimate investments. This good governance analysis is aligned with international standards.
Monitoring the attainment of the sustainable objective is done in monthly, quarterly and annual reporting while the Fund’s measurement, avoidance, mitigation and improvement on principal adverse impact indicators is reported annually in a separate PAI report.
No significant harm to the sustainable investment objective
In its investment decision making process, the Fund takes into account the PAI on sustainability issues as outlined in the SFDR to assess that (potential) investment do not significantly harm the sustainable investment objective.
As the Fund mainly invest in other funds, the Fund assesses if the target funds have:
- commitments, reporting, targets, policies and processes in place which take PAI into account where applicable
- assessment of underlying investments to confirm compliance with the Fund’s minimum criteria
Hence, the Fund is addressing the PAIs as follows:
- negative screening/exclusions
- positive screening
- quality investigation (of the manager’s commitments, reporting, targets, policies.
Depending on the underlying investment and ESG theme, different PAI are prioritised.
As part of the investment process, the Fund performs a good governance analysis aligned with international standards. The Funds investigates the governance quality of the companies, organizations, vehicles, and funds managing the ultimate investments. This analysis is based on a combination of international standards from the UN Principles for Responsible investment (UNPRI), UN Global Compact, the OECD Guidelines for Multinational Enterprises the UN Guiding Principles on Business and Human Rights and the Sustainability Accounting Standards Board (SASB). Focus points for the analyses conducted include employee engagement, diversity & inclusion; business ethics; operational and manager quality.
More details can be found in the Pre-Contractual Disclosure Document (Annex III)
Sustainable investment objective of the financial product
The objective of the Fund is to achieve impact and long term capital growth by making sustainable impact investments. The Fund invests in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments with the intent to contribute to measurable positive social, economic and environmental impact alongside financial returns.
The Fund has a multi-thematic approach, meaning an investment is categorized under a main ESG theme. The themes may change or be expanded on as the investment universe broadens. The ESG themes currently being targeted include:
- Social Objectives
Financial Inclusion, Education and Social Impact - Environmental Objectives
Renewable Energy and Natural Capital
Each ESG theme aims to contribute to several UN Sustainable Development Goals (SDGs). To identify how its investments are contributing to the SDGs, investments are divided into ESG themes based on their sustainable investment objectives (social or environmental) or economic activities. The impact of the Fund is measured on each SDG using specific key performance indicators per theme/SDG.
- Financial Inclusion: contributes to SDG 5 (Gender Equality) 8 (Decent Worth and Economic Growth) and 10 (Reduced Inequalities)
- Education: contributes to SDG 4 (Quality Education) and 10 (Reduced Inequalities)
- Renewable Energy: contributes to SDG 7 (Affordable and Clean Energy), 9 (Industry, Innovation and Infrastructure) and 13 (Climate Action)
- Natural Capital: contributes to SDG 6 (Clean Water and Sanitation), 13 (Climate Action) and 15 (Life on Land)
- Social Impact: contributes to SDG 10 (Reduced Inequalities) and 11 (Sustainable Cities and Communities)
More details can be found in the Pre-Contractual Disclosure Document (Annex III)
Investment Strategy
The Fund’s objective is to achieve impact and long-term capital growth by making sustainable impact investments. To achieve the Fund’s impact and long-term capital growth objective, the strategy of the Fund is to invest in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments. The Fund will have exposure in both developed countries and emerging markets and shall be focused on sustainable impact investments.
The alignment with the impact investment objective of the Fund drives the initial screening of a potential investment. Investments that do not aim to significantly contribute to at least one SDG or cannot report on the Fund’s required indicators to quantify their contribution, are excluded from the investable universe.
Then, the Fund’s minimum criteria are applied:
- For funds domiciled in the EU, funds must be classified as SFDR article 9.
- Funds not falling under SFDR, such as funds domiciled outside the EU, can nevertheless have a clear sustainability objective. The Fund can invest in such funds if they 1) align with the sustainable investment objective, 2) match the definition of sustainable investment based on the Fund’s sustainability due diligence.
- All funds that the Fund invests in must be signatories of, or conform with, UNPRI. This can be at fund company level or investment manager level.
- All investee funds must comply with the exclusion list of the Fund.
- All investee funds must be able to fulfil the reporting requirements of the Fund.
The Fund investigates the governance quality of the companies, organizations, vehicles, and funds managing the ultimate investments. This analysis is based on a combination of international standards from the UN Principles for Responsible investment (UNPRI), UN Global Compact, the OECD Guidelines for Multinational Enterprises the UN Guiding Principles on Business and Human Rights and the Sustainability Accounting Standards Board (SASB). Focus points for the analyses conducted include employee engagement, diversity & inclusion; business ethics; operational and manager quality.
More details can be found in the Pre-Contractual Disclosure Document (Annex III)
Proportion of investments
The Fund aims to invest 100% of invested capital in:
- SFDR article 9 funds, and or
- Non-EU funds that make 100% sustainable investments based on proprietary analysis, and
- companies and financial instruments deemed to be sustainable based on proprietary analysis.
A minimum of 20% of the invested capital of the Fund will contribute to an environmental objective and a minimum of 20% of the invested capital of the Fund will contribute to a social objective.
Here invested capital is defined as the investments in the above mentioned assets. While the Fund aims to select as much of its portfolio investments as possible to be aligned with its sustainable objective, this is not always possible. Fund assets that are not aligned with its sustainable objective are grouped in the category ‘other’. An asset may be marked as ‘other’ for the following reasons:
- Cash or money market instruments: the Fund may hold cash or money market instruments committed to a planned investment, cash freely available for investment or cash for portfolio management purposes.
- Foreign currency hedging: the Fund may hedge its foreign currency exposure for portfolio management purposes. The Fund does not apply hedging instruments or other derivatives for other purposes.
It can be assumed that the category ‘other’ will make up no more than 25% of the Fund’s total Net Asset Value, meaning that a minimum of 75% of the Fund’s Net Asset Value will be invested into sustainable investments.
More details can be found in the Pre-Contractual Disclosure Document (Annex III)
Monitoring of the sustainable investment objective
The Fund monitors the attainment of the sustainable objective as follows:
- Monthly monitoring of investment allocation towards the Fund’s sustainable objective
- Quarterly monitoring on Key Performance Indicators per ESG theme
- All investments are monitored on an ongoing basis from both financial and sustainability point of view. During this monitoring the Fund maintains close contact with the investee funds and engages with them if their actions appear to deviate from the Fund’s investment objective.
The Fund reports on the attainment of the sustainable objective as follows:
- Monthly in the fund factsheet
- Annually in the:
- Annual Impact Report
- Principle Adverse Impact report
- (Interim) Financial Statements
More details can be found in the Prospectus and Pre-Contractual Disclosure Document (Annex III)
Methodologies
The Fund uses the following methodology to measure the attainment of sustainable objective. The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used.
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Financial Inclusion (covering investments with a social objective) |
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SDG |
Target |
Key Performance Indicator (KPI) |
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5 (Gender Equality) |
Increase gender equality and empower women and girls by facilitating access to finance for women |
The % loans to women (based on the Invested Capital of the Fund) |
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8 (Decent Work and Economic Growth) |
Increase sustained, inclusive and sustainable economic growth, full and productive employment and decent work |
The impact is being measured by the number of jobs supported (based on the Invested Capital of the Fund). |
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10 (Reduced Inequalities) |
Reduce the development gap between urban and rural communities in developing economies by increasing the number of loans to borrowers in rural areas |
The % loans to borrowers in rural areas (based on the Invested Capital of the Fund) |
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Education (covering investments with a social objective) |
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SDG |
Target |
Key Performance Indicator (KPI) |
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4 (Quality Education)
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Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all by providing loans to underprivileged students. Due to the fact that the related investment structure will mature over time as the loans will be paid off, the number of loans will decrease. |
The number of loans being provided to students (based on the Invested Capital of the Fund) |
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10 (Reduced Inequalities) |
Reduce inequality within and among countries by increasing the number of students from developing economies that gaining access to education. Due to the fact that the related investment structure will mature over time as the loans will be paid off, the number of loans will decrease. |
The % of loans being provided to students from non-high-income countries (based on the Invested Capital of the Fund) |
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Renewable Energy (covering investments with an environmental objective) |
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SDG |
Target |
Key Performance Indicator (KPI) |
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7 (Alternative and Clean Energy) |
Ensure access to affordable, reliable, sustainable and modern energy by increasing the share of renewable energy in the global energy mix |
The number of MWh (megawatt -hour) generated or stored (based on the Invested Capital of the Fund) |
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9 (Industry, Innovation and Infrastructure) |
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation by increasing the construction of renewable energy capacity and related infrastructure |
The number of MW (megawatt) renewable generation or storage capacity installed (based on the Invested Capital of the Fund) |
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13 (Climate Action) |
Take urgent action to combat climate change and its impacts by avoiding CO² emissions from fossil fuel by investing in renewable energy and CO²-saving projects |
The number of eCO² emissions avoided (based on the Invested Capital of the Fund) |
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Natural Capital (covering investments with an environmental objective) |
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SDG |
Target |
Key Performance Indicator (KPI) |
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6 (Clean Water and Sanitation) |
Ensure sustainable management of water and sanitation by responsibly managing waterways in invested natural capital projects |
Kilometres of sustainably managed watercourses. (based on the Invested Capital of the Fund) |
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13 (Climate Action)
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Take urgent action to combat climate change and its impacts by avoiding CO² emissions by investing in natural capital projects |
Portfolio sequestration of number of tonnes CO²e / (based on the Invested Capital of the Fund)
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15 (Life on Land) |
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss by investing natural capital projects |
Number of hectares of sustainably managed land area (based on the Invested Capital of the Fund) |
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Social Impact (covering investments with a social objective) |
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SDG |
Target |
Key Performance Indicator (KPI) |
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10 (Reduced Inequalities)
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Reduce inequalities on a local level by providing disadvantaged people with essential services |
Number of people provided with essential services (based on the Invested Capital of the Fund) |
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11 (Sustainable Cities and Communities)
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Make cities and settlements inclusive, safe, resilient and sustainable by providing safe, affordable housing and basic services to disadvantaged people. |
Number of disadvantaged people provided with affordable, quality homes (based on the Invested Capital of the Fund) |
More details in the Pre-Contractual Disclosure Document (Annex III)
Data sources and processing
The Fund uses data for the following purposes:
- Investment sourcing
- Report on attainment of the sustainable objective
- Report on PAI
Data used and processed by the Fund to attain the sustainable investment objective and report on PAI are as follows:
- Sourcing: In the sustainability assessment of (potential) investments quantitative data is used where possible and applicable. To record and report the principal adverse impact indicators as well as the sustainability risks the Fund Manager is using independent software for its data collection. The Fund Manager decided to use external software given the complexity and the need of standardization of data collection.
- Data processing: the Fund processes data from investees via a third party software provider, checks the received data and does not modify data beyond preparing investor communications with data received at 1.
Please find more details in the latest PAI Report.
Limitation to methodologies and data
The Fund expects limitations to occur with the current methodologies and data collection as all investees are transitioning to new reporting methods required under the Sustainable Finance Disclosure Regulation (“SFDR”). As the financial services industry matures, the availability of data related to the Fund’s SDG KPI’s, methodology and PAI indicators expected to evolve.
Due diligence
The fund of fund structure limits the Fund’s direct influence in the underlying investments. Therefore, the Fund has a sustainability due diligence process in place to assess the sustainability and impact of the fund strategy and its underlying assets.
- Investment Advice: In the investment advice ABN AMRO Investment Services (“AAIS”) will present their advice on the investments being recommended. The Investment Advice is set according to a consistent template (including dedicated ESG paragraph) and supported by a fixed set of ESG documentation. The Investment Advice contains the investment allocation to an ESG theme and therefor the contribution to the Fund’s sustainable investment objective.
- The Fund reviews AAIS’ prepared investment advice during the monthly Investment Committee meeting. Key elements to review are, where relevant:
– Sustainability policies at the level of the manager
– Policies and sustainable investment guidelines for the fund
– ESG integration in the investment process
– ESG resources and capacity
– Do no significant harm and good governance assessment
– Contribution to impact target of underlying assets, including alignment with EU Taxonomy where relevant
– Sensitivity to material ESG risk events - The Fund Manager reviews AAIS’s ESG policy and due diligence process regularly.
- All investments and their contribution to the Fund’s sustainable objective are audited annually by an external third party.
More details can be found in the Prospectus and Pre-Contractual Disclosure Document (Annex III)
Engagement
The Fund upholds the following approaches with regards to engagement with its investees:
- Engagement with fund manager: The Fund engages with underlying fund managers, where relevant. Engagement can be done by Privium, ABN AMO Investment Services or both. Engagement topics are based on the sustainability assessment made on the fund. Where data is found to be missing or insufficient in the underlying fund’s reporting, the Fund will engage with the fund manager to remedy this. The Fund prioritizes the engagement topics by considering the applicability of the PAIs on the various impact themes in the portfolio.
- Voting: As a result of its investment, the Fund has gained voting rights for many of its holdings. The Fund Manager, on behalf of the Fund, uses the option to vote by proxy during annual general meetings and interim or special meetings. Voting preparation (advice) and voting execution may in certain cases be outsourced to an external party. In principle, voting will occur in line with the Dutch corporate governance code and relevant international corporate governance codes. Proposed changes to an investment’s mandate, activities or targeted geographies are investigated as alignment with the Fund’s minimum criteria needs to be considered.
- Ongoing monitoring and divestment: All investments are monitored on an ongoing basis from both financial and sustainability point of view. During this monitoring the Fund could find that an investee has invested in assets which do not fit the sustainable investment objective, no longer pass the do no significant harm screening or no longer displays good governance. This could happen for instance as a fund broadens its investment mandate. When an issue is detected, the Fund engages with the investee to a) understand the reason for the issue and decide if this is expected to stay, increase or decrease over time, b) investigate what actions are planned/can be taken to improve, c) give input where relevant to help improve. If the sustainability profile is not expected to improve within a set timeframe, the Fund will divest the position.
More details can be found in the PAI Report
Attainment of the sustainable investment objective
The Fund does not compare its impact performance to a benchmark or index but instead reports its contribution to the SDG’s both quantitatively and qualitatively.
Reporting
- Annual Report 2023 PSIF
- Annual Report 2022 PSIF
- Annual Report 2021 PSIF
- Interim Financial Statements 2024 PSIF
- Interim Financial Statements 2023 PSIF
- Interim Financial Statements 2022 PSIF
- Impact report 2023 (EN)
- Impact report 2023 (NL)
- Impact report 2022 (EN)
- Impact report 2022 (NL)
- Impact report 2021 (EN)
- Impact report 2021 (NL)
- Monthly Statement Article 50 Bgfo PSIF
Prospectus
- Prospectus PSIF
- Explanation regarding Prospectus PSIF
- SFDR Pre-contractual disclosure document PSIF (version 2.2, August 2024)
- PAI Report PSIF
Capital Distribution
Key Information Document
Forms
