The 2017 Corporate Social Responsibility Report of TSMC mentions – on page 189 – a quote from the Cadmos Funds:

“TSMC has been a core holding of the Cadmos Emerging Markets Engagement Fund since its inception in 2009. Through our yearly engagement meetings involving several key staff and management of TSMC, you have shown an outstanding level of transparency and interest in learning from our comprehensive sustainability assessment. As an engaged shareholder, it was and will be a pleasure for Cadmos to accompany TSMC on the road of continuous improvements related to its most material ESG topics.

Melchior de Muralt, President of Cadmos Funds”

Resounding success for our recent financial conference in Lausanne. After the welcome speech by Guillaume Pictet, our guests were able to discover how our thematical fund generated a performance of more than 30% ytd. Then they had the opportunity to hear Mr Jean-Philippe Rochat speak about Switzerland’s candidacy for the 2026 Olympics and the related issues.

We look forward to seeing you in 2018 for our next event in Lausanne.

In this video, Melchior de Muralt, managing partner at de Pury Pictet Turrettini (PPT), explains how the sustainable development goals set in Geneva could yield good investment themes. 

Speaking at the Geneva Forum for Sustainable Investing, he gives his best tips for independent asset managers looking to move into the impact investing area.

On the 12th of May, Debiopharm hosted in its premises a first-of-its-kind conference with several actors and pioneers within responsible investments. De Pury Pictet Turrettini & Co. (PPT) together with Impact Finance co-organised this event with the support of “Partners for Sustainability”. The objective was to illustrate how to invest efficiently and responsibly by taking the cocoa industry as an example. Melchior de Murlat, managing partner of PPT welcomed the appreciatively 50 participants and presented the program.

At first, Francis Mathieu, fellow of the “Center for Sustainable Finance and Private Wealth”, from the University of Zurich introduced the audience to the progress made within responsible investments during the last twenty years. Melchior de Muralt put forward various investment solutions which are for many years simultaneously delivering sound returns and a tangible impacts. Cadmos Swiss Engagement Fund is one example. It has been ranked first in category by Morningstar and was hence logically awarded the famous five star rating.

Dominique Habegger presented in particular the positive impacts resulting from the engagement with Lindt & Sprüngli – an iconic company which is part of the Fund since its inception. Since 2014 we have conducted several open and constructive dialogues between the highest management representatives of the company together with the portfolio manager and our external experts. Some improvements of Lindt’s “Supplier Code of Conduct” published in 2016 were indeed directly answering our improvement suggestions formulated two years earlier. Even though the company is far from perfect in regards to traceability and human rights – like most multinationals within the chocolate industry – this example illustrate quite well that shareholders can nevertheless exert a positive and efficient influence.

An alternative investment strategy supporting innovative small and medium sized enterprises was later presented by Benjamin Firmenich, co-founder of Impact Finance. This impact Fund invests directly through private debt instruments in enterprises with a proven business model and track-record throughout the food and agriculture value chain. Since seven years, the Fund invested over $92 mio in more than 185 operation with loans averaging $800k at 9.5% for a two year period essentially in Latin America but also in Asia and Europe. Currently, the Impact Finance Fund supports 38 enterprises among which Ethiquable, an agricultural cooperative promoting an innovative and impactful fair trade business model.

Ethiquable’s co-founder Christophe Eberhart introduced his company which generated in 2016, essentially with chocolate but also with coffee and tea, around € 32 mio of revenues. Ethiquable provides a minimum price guarantee to all its organic cocoa producers. This model empowers people and enables them to secure their livelihood but also allows these farm operations to maintain their productions. This has proven particularly important in recent times as the cocoa prices have dropped by nearly 40%.

Melchior de Muralt summarized this event by highlighting the importance of a qualitative shareholder dialogue with large listed companies. Many industries are controlled by large multinationals, it is therefore important to engage with them to foster progress. Even if progress is sometimes slow and marginal, we can as shareholder have a substantial impacts on the lives of millions of people. In paralell, it also make sense to invest in pioneer and smaller companies like Ethiquable. Both investments are perfectly complementary from a risk/return perspective. From an impact perspective, we note a positive cumulative effect – generating progress at the large multinational companies and providing capital to smaller innovative companies which are setting the new frontiers for best practices. Melchior de Muralt exposed that we even have an economic interest for Lindt & Sprüngli and Ethiquable to share on their respective expertise. This is precisely what the Cadmos Funds are doing today, fostering win-win partnerships between performing and successful multinationals and innovative social enterprises.

Melchior de Muralt, Managing Partner of de Pury Pictet Turrettini & Co. Ltd and Vice-President and member of the Board of Directors of Blue Orchard Finance S.A. participated on March 21st to a multi-stakeholder discussion organised by the Graduate Institute’s Centre for Finance and Development and the World Bank Group Geneva. They have launched a new series of events on Financing for Development in Action.

The challenges that Low Income Countries (LICs) face in the new global economy, and the need for innovative approaches to development and its financing, have been discussed in this second event. Melchior addressed in particular the opportunities and challenges impact investors face in successfully investing in LIC’s.

Axel van Trotsenburg, World Bank Vice President of Development Finance, Marie-Ange Saraka-Yao, Managing Director, Resource Mobilisation and Private Sector Partnerships at the GAVI Alliance and Ewen Macleod, Head of the Policy Development and Evaluation Service, United Nations High Commissioner for Refugees (UNHCR) participated to this multi-stakeholder discussion, which was moderated by Nadia Isler, Director, SDG Lab, Office of the Director-General, Office of the United Nations at Geneva.

On February 21st, PPT organised in its premises a lunch presentation event of the Impact Finance Fund. Cédric Lombard and Benjamin Firmenich, co-founders of Impact Finance presented this innovative impact investment fund launched 7 years ago. It is essentially composed of private debt in small and medium sized entreprises with a proven business model and track-record throughout the food and agriculture value chain but also within the renewable energy or microfinance sectors. The Funds invests essentialls in Latin America but also in Asia and Europe.

They were accompanied by Félix Marin, President of the Coopérative agraire cafetière Hemalu du Bois des Incas (Coopchebi) based in Peru. This cooperative produces biological coffee with an impressive success. The growth of the company is financed by the Impact Finance Fund.

This Fund demonstrates that it is possible to generate superior returns while contributing to a positive and measurable social and environmental impact.