The Peace Investment Fund (PIF) will be a global equity engagement fund with a portfolio of 30-50 multinational companies that are invested in fragile states. We compose the portfolio by first identifying the economically most impactful companies in these markets. We then assess the impact of the 300 top companies on fragility by checking their activities against ESG and peacebuilding criteria. Those with a positive track record enter the universe that our financial partners pick from. In the realm of the Cadmos Funds we then engage with portfolio companies on their role for stabilising conflict-prone societies. Our general recommendations, the Peacebuilding Business Criteria, are very business-oriented as you can see here.
The business case for investing in the PIF is multiple: For investors that look for thematic funds, this one is the first linking investment and peacebuilding. For those looking for a great return we can demonstrate that there is a strong correlation between the financial performance and the conflict-sensitivity of a company: A pilot index ranking 100 companies based on their peacebuilding performance showed that the 20 best outperformed MSCI World by over 60% in 5 years, over 30% in 3 years and over 10% in 1 year; the 20 last companies of the index underperformed MSCI World at almost exactly the same levels. We think that we have possibly found a way to identify companies with the best ability to adapt to complex environments.