Broad diversification of development investments
responsAbility grows its assets under management by 22%
Zurich, 22 June 2016 — responsAbility Investments AG, which specializes in development investments, is continuing its success story: In 2015 – as in previous years – the asset manager attracted over USD 500 million of new assets, which were invested via 12 different investment vehicles in a total of 522 companies in 95 developing countries and emerging economies. Strong growth was recorded in energy and agricultural investments in particular.
In the financial year 2015, responsAbility grew its assets under management by 22% to CHF 3 billion. As was the case each year since 2011, this reflects inflows of new assets totalling around USD 500 million – of which 50% stemmed from retail investors, 31% from institutional investors and 19% from public sector investors.
Strong growth in assets under management was recorded in the agricultural (+37%) and energy (+25%) sectors in particular. At 81%, the financial sector – which responsAbility funds have invested in since 2003 – continued to account for the largest proportion of invested assets, followed by energy (12%) and agriculture (7%).
Equity investments represent another growth segment within responsAbility’s portfolio: At the end of 2015, they accounted for 9% of invested assets. The need for growth capital among companies in developing countries is still not adequately met by local lenders. Since 2003, responsAbility investment vehicles have been investing primarily in financial institutions and, in recent years, increasingly also in other sectors. responsAbility intends to further diversify and selectively expand these activities in the future.
The investment vehicles managed by responsAbility invest in developing countries and focus exclusively on financially successful companies that have a positive impact on development through their offering. For example, investments in producers of renewable energy close a significant supply gap, while companies operating in the sustainable agriculture sector give smallholder farmers access to markets where they can sell their produce. At the same time, microfinance and other financial institutions enable broad sections of the population to access financial services.
In 2015, responsAbility investment vehicles invested almost USD 1 billion in 522 financial institutions, agricultural companies and energy firms – carrying out more than 700 transactions in this context. In the energy sector, one responsAbility investment team also worked with 19 financial institutions across 15 countries in order to access projects in the areas of energy efficiency and renewable energy production via these partners.
A total of USD 11.8 billion of turnover and USD 1.7 billion of after-tax profits was generated by the 338 companies financed directly in 2015 alone. These firms paid USD 444 million of taxes and employed 400,000 people. As a result of energy investments, 214,000 tonnes of CO2 savings and 871,000 MWh of energy savings were achieved in 2015 – all of which make an important contribution to sustainable development in the economies concerned.
Rochus Mommartz, CEO of responsAbility, stated: “To successfully develop new products and services in the field of development investments, what is needed first and foremost is a sound knowledge of local markets. Around 150 experts working at our 9 offices across 4 continents identify new investment opportunities on an ongoing basis, thus laying the foundations for the continued successful development of our business.”
responsAbility Investments AG
Ulli Janett, Media Relations
Telephone: +41 44 250 67 15
e-mail: ulli.janett [at] responsAbility.com
About responsAbility Investments AG
responsAbility Investments AG is one of the world’s leading asset managers in the field of development investments and offers professionally managed investment solutions to both private and institutional investors. The company supplies debt and equity financing to non-listed firms in emerging economies and developing countries. With their inclusive business models, these firms contribute to development in their markets.
responsAbility currently has USD 3.1 billion of assets under management invested in over 520 companies in 95 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market such as Baumann & Cie, Raiffeisen Switzerland, Swiss Re Foundation, Vontobel Beteiligungen and Alternative Bank Schweiz, as well as various private investors and its own employees. responsAbility is regulated by the Swiss Financial Market Supervisory Authority FINMA.