On January 2, 1998, upon the merger of Cariplo Bank with Banco Ambrosiano Bank, Fondazione Cariplo sold its entire stake of 3.5 billion shares in Cariplo Bank for 8.6 trillion Italian Liras and concurrently subscribed for 356,317,984 Banca Intesa ordinary shares and 23,420,128 bonds convertible into Banca Intesa ordinary shares for some 1.1 trillion Liras in aggregate.
At September 30, 1998, Fondazione Cariplo’s net assets amounted to 10.6 trillion Liras (5,482,676,990 euros) at book value and to 11.9 trillion Liras (6,186,354,835 euros) at market value.
As of December 31, 2020 the market value of our Foundation’s net assets was 6.9 trillion euros and the market value of its total assets was 7.7 trillion euros.
As of that same date, the Foundation’s assets were invested as follows:
- Diversified liquid investments: 5.2 trillion euros invested In Quaestio Alternative Fund - Fund One, a multi-manager, umbrella-type UCITS fund;
- Equity stakes, including the shareholding in Intesa Sanpaolo S.p.A., amounting to some 2.1 trillion euros;
- Diversified illiquid investments connected to Fondazione Cariplo’s mission (private equity and infrastructure, social housing, microfinance and impact investments, agriculture, seed and venture capital investments) amounting to 335.04 million euros.
From the date it sold its stake in Cariplo Bank (1998) to December 31, 2020, our Foundation allocated on average (including provisions) over 177 million euros annually in grants corresponding to 2.61% of the market value of its net assets. Over the same timeframe the market value of Fondazione Cariplo’s net assets increased from around 6.1 trillion euros to about 6.9 trillion euros, growing at a 12.63% rate versus a cumulative inflation rate of 41.25%.
Rigorous rules in investment choices
As early as 2008 Fondazione Cariplo adopted a socially responsible approach to investing (SRI) aligned with global best practices in the field. Socially responsible investing means investing consistently with our ethos and philanthropic mission under a long-term approach, mitigating not just reputational risk but importantly also market risk.
In defining the criteria for our socially responsible investing, we chose to focus on few key themes, and to not invest in financial instruments issued by companies violating the principles enshrined in fundamental international conventions on human rights, environmental protection, weapons of mass destruction, and fighting corruption and also financial instruments issued by governments committing serious violations of human rights.
Mission Connected Investments (MCIs)
Mission-connected investments are investments made to generate not just financial but also social returns. MCIs mainly consist of private equity and infrastructure, green energy and energy efficiency, social housing and urban regeneration, agri-food, social finance, and venture capital investments for which our Foundation has agreed to a financial return target of 2% above inflation.
Sustainable finance Series
In collaboration with Eticanews.it, Fondazione Cariplo has launched a series of publications, the Sustainable finance Series that informs on how our Foundation invests its assets by sharing our initiatives and experiences.