The Impact Investing Market in the Covid-19 Context
Introduction As the novel coronavirus, COVID-19, has spread globally, it has left in its wake acute health concerns compounded by economic devastation. The full effects of the pandemic and [...]
Please read this heartfelt message from our Executive Chairman and “Team Impact” about COVID-19.
Also, please read this message from Amit Bouri, Co-Founder and CEO of the Global Impact investing Network.
Breaking News – Important Investor Announcement
20 March 2020
Dear Investor
Financial markets have been in turmoil with investors facing large portfolio losses for those exposed to the JSE and bond markets. The Rand has also taken a big knock as a consequence of investors disinvesting from South Africa.
The Corona virus has been declared a global pandemic and is expected to negatively affect the local economy severely, which was already in recession before this crisis unfolded. It is possible that economic growth for the first quarter 2020 could be as much as -5% and be an even bigger contraction for the second quarter.
The SARB has responded to the crisis with a 1% cut in the repo rate from 6.25% to 5.25%.
At Impact Investment Management, we can at least provide our investors with some comfort. The nature of our investment strategies is somewhat insulated from the listed financial markets. We have not had any indication that our investments have been negatively affected at this time. We are monitoring the situation very closely. We also believe that we are in a very good position to take advantage of investment opportunities that are opening up as assets become cheaper.
Our Cash Management Fund benchmark is repo + 2%. The repo rate moves from 6.25% to 5.25% means our benchmark will shift from 8.25% to 7.25%. However, the fund has been achieving 13%+ and we anticipate that this will continue to be the case going forward.
Our Section 12J investment projects have also not been affected as such by the Corona crisis and our investment strategies remain on track. We continue to monitor the situation.
Our investment strategies are aligned in such a way that risks are managed and mitigated to ensure investors are protected from loss.
Should you have any questions please do not hesitate to contact us.
Regards,
The Impact Investment Management – Investment Committee
Who we are
As an impact investment company, Impact Investment Africa focuses on investments that, along with generating financial returns for investors, seek to achieve a positive and measurable socio-economic or environmental impact. This includes investments into SME growth companies, education, medical, aviation, agricultural projects, manufacturing, information technology and private property development with a focus on affordable housing.
Job Creation
Sustainable job creation promotes inclusive economic growth and reduces poverty. As an impact investment company, we focus on both financial reward and positive impact. By choosing investments that create permanent job opportunities, we strive to make a difference in the communities in which we invest.
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Food Security
With Zero hunger as the second goal on the United Nation’s Sustainable Development Goals, it is evident that food security and nutrition is one of the greatest challenges the world faces. Focusing on investments that, through technology and efficient business models, promote sustainable agriculture and increase farm productivity, we strive to address the global food security challenge.
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Housing Security
The Constitution states that “everyone has the right to have access to adequate housing.” With the lack of affordable housing and the inaccessibility of finance, many people rely on the government to provide them with housing. With the current housing backlog and a range of highly differentiated, and sometimes contradictory policies and systems in place to respond to housing need, this constitutional right remains unfulfilled in the lives of many South Africans. Through our Mortgage Support Fund, we aim to provide accessible finance in order to promote home ownership.
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SME Growth
In an effort to stimulate the economy and promote investment in SMEs, Treasury (through section 12J of the Income Tax Act) gives South African taxpayers a 100% tax deduction on investments into approved venture capital companies. Our range of section 12J venture capital companies offer tax-deductible investments into pre-approved SMEs that are both scalable and profitable
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African Markets
Africa’s financial markets are characterized by their high costs, lack of investment channels, low investment ratings, low liquidity, limited access to appropriate financial instruments and a limited understanding of true impact investing. We aim to address these shortcomings by creating a listings pipeline, generating additional investment channels that provide liquidity and capacity. We aim to facilitate economic expansion through innovative financial structuring and the use of the latest technology and product design
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