Investment manager Stanlib Credit Alternatives has launched the Stanlib Khanyisa Impact Investment Fund, which will pursue investment opportunities in areas that support South Africa’s economic development.
The fund was launched on April 30 using a live virtual stream headlined by two renowned keynote speakers Dr Miriam Altman and Dr Thabi Leoka who shared their insights on impact investing and its benefits for South Africa.
Derived from the isiZulu word Khanyisa, which means to illuminate, to turn on or to light up, the fund will bring economic and social benefits through investment in infrastructure, inclusive financial services and agriculture.
Stanlib investments head Mark Lovett says the Stanlib Khanyisa Impact Investment Fund represents the next step in Stanlib’s environment, social and governance journey at a time when the imperative is clear for South Africa.
“The fund’s impact objectives will provide measurable developmental benefits for investors in line with the United Nation’s Sustainable Development Goals.”
According to Stanlib, the fund forms part of a broader effort in helping drive private capital into impact-themed investments that directly address a range of the country’s socioeconomic challenges.
As a result, the fund will focus on investments that aim to increase economic capacity building (through transformational infrastructure), reduce income inequality (by funding small and medium-sized enterprises and affordable housing and healthcare projects), improve food security and provide wider access to renewable energy.
The fund will, according to Stanlib, constitute a diversified pool of credit exposures that offers a higher yield than traditional fixed income propositions, regular income distributions and long-term capital preservation.
Its objective is to generate a return of consumer price index plus 4.5%, over a rolling 12-month period. The closed-ended limited liability partnership fund is available in the institutional market, with a first close target during the second half of the year.
Stanlib Credit Alternatives head Johan Marnewick says the new fund will complement and strengthen Stanlib’s existing impact assets, which make up more than a quarter of its total assets under management and have successfully generated returns for clients while achieving tangible socioeconomic and environmental benefits.