IMPACT Awards 2022

Asset manager of the year - large: Finance in Motion

Source: Finance in Motion

Finance in Motion's impact funds focus on environmental and social themes and work towards achieving 13 of the 17 UN Sustainable Development Goals (SDGs).

One IMPACT awards judge praised the fact that 100% of Finance in Motion investments are in emerging markets. Another highlighted Finance in Motion's "strong commitment to building markets for people and the planet".

As of 30 June, Finance in Motion and its advised funds have cumulatively invested €6.5 billion ($6.8 billion) of impact assets across 38 emerging markets and raised over €1.7 billion in private capital.

Several Finance in Motion advised funds, such as the Fund and the SANAD Fund for MSME [micro, small and medium enterprises], use a public-private partnership – bringing donor agencies, international financial institutions, and private investors together.

Finance in Motion has also sought to strengthen emerging markets' financial systems, including channelling the advised funds' investments through a range of local financial intermediaries – from commercial banks and microfinance institutions to leasing companies – to best reach target groups and support financial sector development, the investor said.

"Investing through financial intermediaries leverages local infrastructure, making efficient use of established resources and achieving wider outreach. But what is more, it helps create enabling ecosystems for social and environmental impact to take hold," Finance in Motion said.

Another judge praised Finance in Motion for "developing an innovative impact management framework verified by a recognised third party".

Finance in Motion’s impact management system and its alignment with the Operating Principles for Impact Management was verified by BlueMark, a provider of impact verifications

In 2021, Finance in Motion introduced a new impact scoring tool for its funds under advisory. The tool is aligned with several industry frameworks and evaluates the investees' outreach to the target group as well as its commitment and capacity to deliver positive impact.

Impact KPIs are defined in line with the respective 'Theory of Change', considering both the direct impact on the investee – for example, by improving a financial institution's capacity to serve the micro, small, and medium enterprise sector – and the indirect final impacts on or through the investee's end-clients, such as increasing carbon dioxide sequestration through expanding forestry.

Another judge praised Finance in Motion for its commitment to diversity: "Team members are from 61 nationalities, 47% of its staff originates from investment countries and almost 50% of them are women."

Sylvia Wisniwski, managing director at Finance in Motion, said: "As a pure-play impact asset manager, we are not only providing professional asset management with credible impact but see ourselves as a disruptive force in the fund industry. We aim to change its business model: from a risk-return asset strategy to a three-dimensional approach, investing capital with purpose.

"Thanks to our specialised teams, we are able to design innovative solutions to today's most pressing development problems, structure investment vehicles and execute these as bespoke solutions."