Siew Li Sen, Business Times 12 Jun 08;
FOR the rich who want to feel good and make money at the same time, BNP Paribas Private Bank has come up with possible solutions.
It is possible to combine responsible investments with philanthropic actions, said Michel Longhini, chief executive of BNP Paribas Private Bank, Asia.
'And the financial returns (of responsible investments) need not be lower than those in the same asset class,' said Mr Longhini yesterday.
Asian clients are gradually showing interest in responsible investments, he said.
Responsible investments seek a financial return while taking into account other criteria in the assessment and selection of assets with the aim of serving a social or environmental cause.
BNP Paribas Private Bank, realising that there is such a demand from clients, has stepped up its services in these areas.
Since last year, it has a team of specialists dedicated to responsible investments, said Mr Longhini.
It has identified a range of products spanning several asset classes for those wanting responsible investments.
One is investments which help to reduce poverty by supporting the development of microfinance institutions in developing countries.
Another is investments in small companies that develop environmental products and services and help fight climate change by financing wind farm construction.
Mr Longhini cited an example where it helped a client combine philanthropic actions with responsible investments.
The client who was interested in the development of microcredit was put in touch with a microfinance institution active in West Africa, in meetings arranged by the bank. A trip was organised and resulted in a philanthropic action centred on an irrigation project.
To complement the donor's action, the bank also advised the client to invest in a microcredit fund which is part of its responsible investments offer.
The bank is also setting up Foundation De L'Orangerie for clients who want to donate money in a structured way, but in amounts not large enough to set up their own foundation.
The foundation, which basically pools money from donors, will be ready by the third quarter of this year, said Mr Longhini.
Donations are between US$500,000 and US$5 million, he said. The private bank also launched an Award for Philanthrophy, and in its inaugural presentation held last month, selected two philanthropists - Mo Ibrahim and Amina Laraki-Slaoui.
Dr Mo Ibrahim has been promoting good governance in sub-Saharan Africa via the Mo Ibrahim Foundation. Ms Amina Laraki-Slaoui set up the Noor centre for disabled persons, which she established in Morocco after suffering a serious accident.
