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SELECTRA launches the first sub-fund of the SICAV-SIF dedicated to Impact Investing

SELECTRA launches the first sub-fund of the SICAV-SIF dedicated to Impact Investing

Luxembourg, 25th August 2016SELECTRA Management Company S.A. is a company dedicated to the creation, management and distribution of UCITS and AIF funds. It is launching the “pilot” sub-fund of EIIP – European Impact Investing Platform, the first SICAV – SIF in the world entirely dedicated to the development of impact investing strategies. The company belongs to FARAD Group, active for 15 years in the financial and insurance sectors throughout Europe.

The SICAV, which recently received the approval from the CSSF – Commission de Surveillance du Secteur Financier – addresses a specific set of institutional clients (banks, pension funds, management companies, administrative bodies, etc.), interested in developing sub-funds dedicated to impact investing within an already existing and fully operational structure.

 

In particular, the investment strategy selected for the first Fund is social housing. This type of investment refers to the set of activities that aim at delivering high-quality standard accommodations to those people risking social exclusion because of their difficulties in affording to buy a house at regular market prices. In particular, the first projects will focus on housing for families having autistic children, self-sufficient elderly people and – more generally – caregiver families.

Today caregiver families are forced to sacrifice their social life because of a number of problems, which in most cases, are easily avoided through the presence of the necessary medical and psychological support in the close neighborhood of the house. Similarly, aging population phenomenon is increasingly leading to a worsening of elders’ lives. These elderly people today see their relatives living far away with the consequence of finding themselves alone and lonely. The initiative’s promoters identify the accessibility to a proper housing as one of the most important needs of any individual.

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Project partners: SELECTRA Management Company (AIFM, GEFIA), KBL (Custodian Bank), SEFEA (Investment Advisor of the first sub-fund), KPMG (Auditor), Deloitte&Touche (Expert in Impact Measurement), Amicorp (Fund Administrator), REAG (External Auditor for the social housing sub-fund).

“The innovative element of this platform – highlights Marco Cipolla, Director of SELECTRA Management Companyis its ability of guaranteeing every social impact projects promoter, the availability of an effective tool for the development and financing of their own initiatives. The project will allow the development of important synergies, first of all the one between the social housing dedicated fund and the upcoming fund (currently in being set-up) dedicated to green building. In addition, the affordable access fee to the platform linked to the extensive fund structuring expertise of SELECTRA, contribute to making this the best solution for all those organizations that find it complex to launch their own vehicle due to lack of resources and/or expertise”.

Fabio Salviato, General director of SEFEA – European Ethical and Alternative Financing Company, considers the EIIP platform as “the first highly innovative instrument dedicated to social impact, which will soon  allow to lead the investments of all socially oriented entrepreneurs and investors as well as the EU structured funds dedicated to this field “.

“The added value – concludes Marco Caldana, CEO of FARAD Group – is the platform itself. At the moment, the market lacks a specialized vehicle enabling those who have ideas to meet with the institutional investors looking for new projects. EIIP supports both sides by encouraging their development”.

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The operation was coordinated by Studio Legale Lambertini e Associati, with the support of the lawyer Francesco Maria Stocco, and it was created in collaboration with Finance & Sustainability, a newly formed consulting company for social impact projects.