Containers Printers: Expanding Horizons for Packaging Industry and Customers — Despite Covid-19’s Ravages on the World

The Covid-19 pandemic has been the defining event of 2020 for businesses and individuals alike. This was equally true for Singapore-based Containers Printers, but the crisis presented CP with the opportunity to demonstrate its willingness and ability to take on new challenges.

While many businesses were required to shut down, CP was deemed an essential service for its support of the food and medical industries. It provides metal packaging and flexible laminates to customers around the world.

In early 2020, CP was asked by a major supplier of medical products to design and produce packaging for protective equipment to support Singapore’s rapidly unfolding Covid-19 response. Not only did the supplier need new packaging, it also needed help to pack the products — something CP generally does not do.

Faced with a distinctly challenging task, the CP team pulled together, planning and co-ordinating the effort to identify potential bottlenecks and problematic issues. Everything from securing additional manpower to allocating packing areas was addressed, while ensuring that processes and standards were maintained. Within a few short weeks, CP began delivering products: mission accomplished.

The Covid-19 project demonstrated a new way of working that CP has consciously sought to develop, since CEO Amy Chung set a new path for the packaging company in 2014.

Chung identified three key long-term trends whose impact would be felt throughout the industry: the globalisation of brands and markets, the rise of sustainable businesses and products, and digitalisation.

Addressing these trends would require significant investments in people, processes, and equipment as CP laid-out in roadmaps for the business. It also necessitated a multi-year change-management process. The company upskilled its workforce, and developed a mindset open to change and new challenges. With the enduring support of the Singapore Ministry of Manpower, CP has transformed itself into a process- and standards-driven organisation dedicated to continuous improvement.

CP first sought to adopt the highest global standards right across its business. This meant a demanding process to become certified for quality management (ISO), food safety and packaging (BRC), as well as social responsibility (Sedex), and more. By adopting the epitomy of standards for its business, CP was able to approach customers in markets around the world with an assurance of excellence.

At around the same time, the company began developing a Kaizen culture — where all employees are actively and equally engaged — starting with small groups in its production teams, where small wins (and bigger national awards) created a virtuous cycle of improvement. More recently, CP has worked with Workforce Singapore and McKinsey to implement lean manufacturing practices, with an important emphasis on lean digital thinking and tools.

A commitment to sustainable business practices has always been a core part of CP’s holistic approach to business. From major projects, such as installing solar panels across all of its factories’ roofs in 2019, to ongoing upgrades to equipment and the application of the latest digital monitoring tools, the company’s ongoing sustainability programs find ways to reduce energy consumption and the CP carbon footprint, each and every year.

From a product perspective, CP has a particularly important role to play in delivering sustainable packaging solutions. CP is a signatory to the Singapore Packaging Agreement, an initiative to reduce waste, and has been working with its customers to develop 100 percent recyclable packaging solutions that maintain product integrity and safety.

As the trends have played out, CP has continued to invest in the capabilities required to address opportunities — at times slightly ahead of the market, particularly in the digital space.

One such investment was in a new state-of-art integrated colour-management system, one part of CP’s digitalisation roadmap. While adoption of the technology was still developing in the industry, CP knew its impact would be profound. It would provide customers and clients with faster turnaround, greater colour accuracy, and an easier way of working across time zones and geographies. CP’s investment was validated almost immediately, as the system turned out to be exactly what was needed by customers looking to meet new, stricter standards.

Colour management is now one of a number of digital services the company offers, complementing its brand protection, supply chain intelligence, and consumer engagement services — digital offerings that barely existed in 2014.

Being based in Singapore provides CP with a competitive advantage that the company considers crucial to its success. With the strong support of various government agencies, the country has become a leading centre for R&D for major multinationals, as well as an increasingly important production centre in the medical and food industries.

Singapore has a thriving ecosystem of local and global partners operating at all stages of the value chain, providing CP with access to fundamental and applied research institutes, global brands, local champions, and start-ups.

All of this has enabled CP to develop a spirit of innovation and eagerness to take on new challenges, from rapid turnarounds in support of an imminent product launch to making long-term commitments to co-develop new products.

Most importantly, CP’s customers are happy with the results, and the path it has chosen. They describe it as “forward-looking” with a “demonstrated openness, and willingness to take on challenges”. The company has, they say, “expanded our horizons”.


Michael Skinner: A Company Leader Driven to Change the Lives of Millions

[caption id="attachment_17590" align="alignright" width="300"] Rainmaker Worldwide CEO: Michael Skinner[/caption]

Rainmaker Worldwide is disrupting traditional responses to our planet’s growing water crisis, and the man driving the company vision is CEO Michael Skinner.

Rainmaker’s commitment to economical, turnkey and sustainable water solutions is widely recognised across the global water industry, and Skinner’s is a respected voice within the cleantech, tech start-up and water technology arenas.

He previously held the position of Chief Strategy Officer, where he was instrumental in building Rainmaker’s international distribution channel. Skinner became Chief Executive Officer in January and brought with him great energy and momentum as Rainmaker entered its next phase of growth.

In the course of 2020, Skinner has achieved many accomplishments, building a strengthened executive and advisory team, acquiring strong investor relationships and leading Rainmaker (OTC: RAKR) into a merger agreement with Sphere 3D (NASDAQ: ANY) expected to close by the end of the year. Perhaps his most significant achievement to date has been transitioning the company from a product-sales focus to becoming a WaaS provider. After completing this strategic shift, Rainmaker has secured major WaaS contracts across continents providing clean water for a competitive per-litre cost, eliminating large CAPEX and regulatory obstacles previously borne by the customer.

This merger opens up tremendous growth opportunities for Rainmaker and its shareholders. With additional access to capital markets and funds to grow the organisation and expand equipment production capacity, Rainmaker can accelerate the volume of WaaS agreements that it can secure and fulfil.

“Rainmaker is building significant business momentum as potential customers come to understand the economic and social benefits of our WaaS offering, versus traditional and expensive water delivery options,” he said.

“Our upcoming merger with Sphere 3D is intended to give us the access to the capital necessary to fund anticipated rapid growth. As we work toward closing the merger, this advance will enable us to avoid any interruptions in our marketing and production efforts.”

Skinner brought invaluable leadership experience of the water and technology industries to the Rainmaker table. He has been CEO of the Innovation Cluster in the Canadian region of Peterborough Kawartha, recognised as one of the best regions in the country for Innovative Water Technology Start-ups by Water Canada. He chairs the Advisory Board of the Centre for Advancement of Water and Wastewater Technologies (CAWT), an internationally recognised research institution.

Rainmaker’s determination to alleviate water stress through affordable and sustainable solutions has deepened as regions experiencing water scarcity have been hit by Covid-19. “Over three billion people lack access to handwashing facilities,” Skinner said. “If communities do not have clean water available, it is extremely difficult to protect against the pandemic. Despite the new challenges COVID-19 has posed, Rainmaker continues to move our innovation forward to make a considerable difference in the lives of millions.”

To learn more, visit rainmakerww.com


Cristina Junqueira, Nubank Co-Founder: Brazil's Wonder Woman of Fintech

[caption id="attachment_16292" align="alignright" width="300"] Cristina Junqueira[/caption]

When the first Nubank card transaction was made in Brazil on April 1, 2014, you wouldn’t have been a fool for failing to anticipate the swift growth of the neobank (one that operates exclusively online).

Nor would you have been alone in not realising how that development would transform the complacent world of banking — in Brazil, and elsewhere.

Nubank was founded in 2013 by Cristina Junqueira, Colombian David Vélez and American Edward Wible. Based in São Paulo, it proved so disruptive that by 2018 it had easily achieved “unicorn” status; in fact, with a valuation of over $10bn, it had surpassed it tenfold.

Cristina Junqueira was born in the former coffee capital of Riberão Preto, and moved to Rio de Janeiro with her family as an infant. She received a traditional education before moving to São Paulo to study industrial engineering at the city’s prestigious university, USP. After graduating, she worked as an associate consultant at the Boston Consulting Group while completing her Masters degree in economic and financial modelling.

In 2007, Junqueira was selected for the One-Year Accelerated Programme at the Kellogg School of Management in the US. On returning to Brazil a year later, still only 24, she was immediately hired by the president of Unibanco, then the largest private banking group in the country. She was chosen to head the SME credit sector with a team of 20 — all older than she was.

The following year, Unibanco merged with Brazil’s second-largest private bank, Itaú, to form a financial giant. Junqueira’s vertiginous rise continued apace. In 2012, she was appointed portfolio manager for the Itaúcard but left, disillusioned, when her proposals for commission-free credit cards and direct communication for clients were ignored.

While contemplating her next step, she met David Vélez, who was working for American venture capital behemoth Sequoia Capital. He was increasingly frustrated by Brazil’s incompetent, over-charging banking system. He didn’t know the industry, but Junqueira did — and she shared his evaluation of it.

"I worked for the largest incumbent bank in Brazil for five years,” she told Fortune magazine, “and I was just done making rich people richer. I was trying to make a lot of changes to make consumers' lives better, and failing miserably at it. And at some point I was like, ‘you know what? I’m done’."

She and Vélez decided to give digital banking a shot. Her banking expertise was complemented by his experience in the world of venture capital, and the technical knowhow of third co-founder Edward Wible.

Their series A financing round coincided with Cristina’s first pregnancy (she affectionately refers to her daughter Alice and Nubank as “twins”). In her seventh month, heavily pregnant, she travelled to California to meet putative investors. The day before giving birth, she signed a deal from her hospital bed. One day after, and she was back on the phone, apologising to contacts for any delay in getting back to them.

The founders chose the name Nubank for two reasons: firstly, “nu” sounds like “new”, but also because in Portuguese it means “nude” — and they wanted to be a transparent organisation. That, and its policy of treating customers like human beings, has proven a winning formula. The company enjoys an NPS rating of +87 (Itaú’s is +14, and considered acceptable).

Nubank is the world’s largest digital banking startup, with over 25m customers, and it recently became the world’s first and only company with a female founder to reach a valuation above $10bn. Junqueira modestly attributes this to the size of the Brazilian domestic market and the fact that there were 60m unbanked adults at the time. Inclusivity is important to Nubank, and the co-founders are justifiably proud of the fact that of the bank’s 2,600 employees, over 40 percent are women and 30 percent identify as LGBT.

By the time her second daughter, Bella, was born at the beginning of this year, Nubank was in the process of launching its first product outside Brazil: a no-fee credit card in Mexico.

The modest mother-of-two has no nanny, despite her workload, and — not yet 40 — shows the verve and vision that suggests more great things are yet to come. Citing Wonder Woman and Margaret Thatcher as inspirations, Cristina Junqueira is clear: “I want my daughters to grow up in a world where they can dream of being whoever they want to be — and you can’t dream of what you can’t see.”


Rainmaker: Revolutionary Water Supply Solutions That Are Needed Now More Than Ever

Across our entire planet, less than three percent of water is fresh. Of this, only 0.5 percent is accessible — and much of it has become contaminated by pollution and untreated wastewater.

The reality is that over two billion people around the world do not have access to clean drinking water, and more than three billion do not have access to handwashing facilities — in the midst of a pandemic. If water supply solutions are not implemented swiftly, by 2030 nearly half of humanity could be living with severe water stress.

Rainmaker Worldwide’s mission is to help solve the global crisis by providing economical, scalable and environmentally sustainable solutions through innovative technology. Following a Water-as-a-Service (WaaS) model, Rainmaker is disrupting the water industry’s traditional responses to our planet’s most pressing problem.

Rainmaker Worldwide Inc (OTC: RAKR) is headquartered in Peterborough, Canada, with an innovation and manufacturing centre in Rotterdam, Netherlands. Rainmaker was formed in 2014 to finance and commercialise patented technology and to consolidate the assets, intellectual property, and executive management expertise of Dutch Rainmaker BV.

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Dutch Rainmaker was founded by Piet Oosterling as a technology company focused on delivering decentralised solutions to world regions affected by water scarcity. Its original technology was developed in 2008 and was continually improved in operation and design.

Oosterling recognised that traditional supply methods were not sufficient to meet the increasing global demand for clean water, or relieve the related stress. Traditionally, drinking water has been drawn from lakes and rivers. Where these sources do not exist, options have been limited to drilled wells or harvested rainwater. The former can run into issues of groundwater pollution, and the latter can be victim to unpredictable precipitation.

Regions that cannot rely on these methods look to other options, such desalinating seawater or purifying polluted water. But traditional purification technologies are primarily only feasible in large, expensive installations suitable for municipal water systems. In other cases, communities turn to bulk water delivery, which is costly and damaging to the environment.

Rainmaker’s industry-leading technology has been developed in two categories: Air-to-Water (AW), which harvests fresh water from airborne humidity; and Water-to-Water (WW), which transforms seawater or polluted water into drinking water. Because of the operating efficiency of its technologies, Rainmaker can provide customers with clean water at a cost competitive with — or better than — traditional alternatives. The compact systems for AW and WW enable decentralised deployment: clean water is produced directly at the consumption site, with no expensive piping or truck transport. AW and WW units can be powered by solar, wind or grid electricity, and can produce up to 20,000 (AW) and 150,000 (WW) liters per unit, per day. The technology uses no chemicals, produces a low carbon footprint, and projects are modular, and easy to scale-up.

Rainmaker’s Air-to-Water in particular has caught the attention of the global water industry. AW uses a turbine to force air through a heat exchanger; the air is then cooled just below dew point, and condensation takes place. The harvested droplets are collected for post-production treatment to ensure it meets drinking water standards. With few competing technologies that can produce water at the same scale, Air-to-Water is a modern solution for remote and desperate communities as well as industrial, agricultural and commercial applications. It reduces the amount of water extracted from the Earth, and limits damage to ecosystems.

Compared to the few existing atmospheric water technologies, Air-to-Water provides:

Lower cost

Lower carbon footprint using renewable energy sources

Versatility of energy input as a direct power source

Rainmaker’s Water-to-Water system, classified as Thermal Membrane Distillation, does not use chemicals or pass feedwater directly through a filter. WW separates water from all other substances — waste, chemicals, or salt — and passes it through a membrane in vapor form. This is much more efficient than Reverse Osmosis (RO), used by other companies, where water containing dissolved salts and other solids pass through the membrane.

Water-to-Water’s advantages over other water-purifying technologies:

Energy consumption is comparable to other Membrane Distillation technologies

Large feedwater capability, unlike RO which struggles with feedwater variation within each unit

Extremely high water recovery rate. In RO processes, 30-50 percent of feedwater does not get converted

Less discharge at the end of process

Lower carbon footprint than competitors

Over years of invested R&D, Rainmaker has networked with prospective customers. Their feedback addressed the logistical and financial barriers that were impeding the purchase of water technology. In 2018, Rainmaker realised that it must transition from a product-sales focus to becoming a WaaS provider.

Restructuring their business model was a major undertaking. In January 2020, Michael Skinner was appointed CEO to lead the company through this strategic shift. Rainmaker now provides clean water for a competitive per-liter cost, eliminating large CAPEX and regulatory obstacles previously borne by the customer.

Skinner has successfully built a strengthened executive team, secured large WaaS contracts and acquired strong investor relationships. Most recently, he is leading Rainmaker into a merger agreement with Sphere 3D (NASDAQ: ANY), expected to close by the end of 2020, which presents tremendous growth opportunity for Rainmaker and shareholders.

This year’s momentum has propelled Rainmaker to increase its reach to water-stressed communities on a global scale. “The water market is long overdue for an affordable clean water solution that does not damage the environment and has the ability to be a long-term solution for water scarcity,” says Skinner. “Rainmaker’s technology and Water-as-a-Service model is what our world needs — now more than ever.”

To learn more, visit rainmakerww.com


Gallatin Point Capital: Differentiated Capital via Industry Expertise and Bespoke Solutions

Private investment firm Gallatin Point Capital (GPC) was founded in 2017 with a primary focus: making opportunistic investments in financial institutions, services, and assets.

Launched by Matt Botein and Lee Sachs, with backing from BlackRock, GPC invests across a wide range of subsectors within financial services, including banking and speciality finance, insurance, asset and wealth management, real estate finance, and financial technology.

GPC’s mission is to serve its investors by identifying, organising, acquiring — and then intensively overseeing — a portfolio of businesses and other holdings with the aim of generating attractive risk-adjusted returns. Its core belief is that it is capable of producing those returns by delivering distinctive, tangible value to its portfolio companies and partners.

In the three years since its launch, GPC has deployed nearly a billion dollars across nine investments, each transaction reflecting the company’s opportunistic and flexible approach to generating targeted returns while solving the transaction and capital needs of partnering companies and management teams. That is bolstered by the depth and breadth of the GPC team’s knowledge and experience across complicated and dynamic industries, regulatory environments, and assets.

Industry Focus and Experience

Focus and expertise are true differentiators and create a competitive advantage in financial services investing, in every aspect of the transaction lifecycle: origination, execution, and management.

GPC’s focus on financial services capitalises on its founders’ extensive careers in the sector, spanning four decades of combined experience identifying successful management teams and providing targeted assistance. That focus helps the firm to maintain a significant advantage in a complex, highly-regulated industry. Its founders have been leaders at institutions such as BlackRock, the US Department of the Treasury, Highfields Capital, Bear Stearns and The Blackstone Group. Each member of GPC’s investment team has dedicated their entire career to financial services.

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Given the complex dynamics of each subsector, GPC’s industry focus gives it an edge in identifying management teams and opportunities that arise from dislocation or changes in technology, regulation, or market structure. GPC’s network allows it to pick up on opportunities, and most of its completed investments have originated from proprietary relationships.

GPC takes a tailored approach, focusing on transactions in which it believes it can be a value-added partner, with a differentiated angle compared to other sources of capital. This has resulted in a high success rate of completing transactions.

The experience, network, and connections that GPC bring to the table create unique opportunities post-closing to add value and support investments through strategic initiatives. GPC seeks to engage with management to add value in capital allocation, hiring, partnership, and other key decisions.

The ability to understand and navigate complex regulatory requirements and a credible track record with regulators is crucial. GPC’s professionals have a profound understanding of the system through private sector and policy experience.

Investment Flexibility and Structuring

GPC approaches each investment with a flexible framework and seeks to create an investment solution that achieves the appropriate risk-return profile while meeting the target companies’ objectives. Examples of GPC’s different forms of investments include:

Control or minority equity: Buyout of leading Lloyd’s of London insurer Canopius

Structured equity, debt or preferred instrument: Investment in family owned real asset manager Hunt Capital Holdings (and, indirectly, its prominent Amber Infrastructure Holdings subsidiary); debt and warrant investment in leading retail mortgage originator Fairway Independent  Mortgage Company; structured equity investments in Phoenix Holdings, the leading Israeli insurance company, and neobank Varo Money

Direct asset ownership: Flow purchase agreement with higher education lender College Avenue

Specific pools of insurance or credit risks: Sponsorship of specialised underwriting entities addressing workers compensation insurance (Pie Insurance) and professional liability insurance (not yet announced)

This flexibility creates a potential competitive advantage over capital sources offering a one-size-fits-all approach to investments by addressing the key considerations and constraints of target companies and management teams. GPC frequently develops structures for modifying an investment’s risk-return profile to protect downside, enhance security, and/or facilitate an exit, while also reaching its partners’ objectives.

With access to significant pools of capital from strategic partnerships beyond its $1.3bn of managed assets, GPC is also able to execute on a range of transaction sizes, from $50m to over $250m.

As economies and financial markets become increasingly dynamic, investors require a matching approach to generating returns. The companies and management teams seeking capital desire a thoughtful partnership as well. While capital remains abundant in the industry, GPC believes its expertise and flexibility will be key to a sustainable and differentiated value proposition.


Metito: Group with a Grasp of Synergy and Solidity

Globally, Metito is recognised as a brand of trust and a provider of choice for intelligent water and alternative energy management solutions. With over 60 years of experience and projects spanning 46 countries the company is leading its industry by example marking many milestones along the way.

Metito's operations cover three business areas: design and build, specialty chemicals, and utilities. The group provides customised, comprehensive solutions across the full spectrum of the industry: desalination, wastewater reuse and recycling; industrial solutions — up to and including hyper-pure water and structures both greenfield and brownfield schemes under different project finance structures. The Group also provides custom alternative energy development and management solutions for utilities and corporations looking to uphold sustainable operations through generating clean, emissions-free energy.

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Metito has developed thousands of projects worldwide, earning it the trust of market leaders and a reputation for professional excellence. The group was the first to introduce the reverse osmosis (RO) technology for drinking water outside the US in 1972. It was also the first to pioneer concession contracts with private entities under Build Own Transfer (BOT), Build Own Operate (BOO), and Build Own Operate Transfer (BOOT) schemes in the Middle East. The company pioneered Public Private Partnership (PPP) agreements for bulk surface water supply concessions in Sub-Saharan Africa, and introduced mega seawater desalination plants and mega water treatment, recycling, and reuse plants in Africa.

The group portfolio holds more than 3,000 projects in 46 countries, managed by some 3,500 employees working from of strategically located operational offices.

Resilient Business Model

With a culture of creativity, accountability, an inimitable shareholder structure and a progressive vision, Metito remains resilient, relevant, reliable, and competitive. It has built a legacy of determination and persistence.

Metito was founded with a vision to be a prominent player and a catalyst in decreasing the impact of growing populations, industrialisation, and globalisation on the earth’s dwindling natural water resources. This vision still stands because of the strength of its team.

“Our people, our most valuable asset, dare to dream and dare to do things differently,” says Metito chairman and CEO Mutaz Ghandour. “We are always challenging ourselves, taking calculated risks and growing as individuals within a company — and as company within our bigger ecosystem.”

“Our aim is to continue developing sustainable projects that preserve the environment and the world’s natural water and energy resources, while creating a cycle of prosperity for the communities we serve.”

That clarity of vision has allowed the company to achieve many milestones over the years, central to which are prominent synergistic partnerships, expansion landmarks and pioneering, sustainable projects across Africa and Asia.

In 2007, Metito welcomed the International Finance Corporation (IFC) as a shareholder and in 2014, the company entered a synergistic partnership with Mitsubishi Corporation, Mitsubishi Heavy Industries and Japan Bank for International Co-operation. With such a high-profile shareholding structure, Metito became increasingly competitive and further geared to pursue its growth plans in new and existing territories.

In 2018, Metito expanded its portfolio to include an alternative energy division targeting emerging markets; and just a year after, a Metito-led consortium was awarded the Rangunia grid-tied solar power plant project by the government of Bangladesh. The winning tariff was the lowest recorded in the country.

In 2019, another Metito-led consortium was awarded the first independent sewage treatment plant project (ISTP) under a BOOT model in the Kingdom of Saudi Arabia, Dammam ISTP — with a designed capacity of 350,000 cubic metres per day. This award winning project reached financial close during the evolving Covid-19 pandemic: a challenge, and a reflection of resilience.

That resilience was also on display at the height of the pandemic when, Metito and Hassan Allam JV inaugurated the world’s biggest agricultural drainage wastewater treatment, recycling and reuse plant in Egypt, Al Mahsamma project.

This award winning project, in the strategic area east of the Suez Canal, will make use of advanced remote monitoring systems and the latest treatment technologies, says Ghandour. “It will sustainably benefit the surrounding community, create attractive opportunities for new investments, and have wider economic benefits for the region and beyond.”

Emerging Stronger

The disruption of the COVID-19 pandemic has brought opportunities for agile companies, Mutaz Ghandour says. “We have always been long-sighted and sufficiently diversified, which limits our vulnerability to global disruptions. Solid financial capabilities, a strong balance sheet, great liquidity and access to credit allow us to continually develop and invest, despite macroeconomic challenges.”

Metito has a vertical and geographical perspective on progress with a motto of “Local presence, global know-how”. Experienced leadership and management teams, digital automation capabilities, access to advanced technology and professional teams all play a key role in creating a resilient business model.


Etihad Credit Insurance's CEO Massimo Falcioni: Export Credit Company Key to United Arab Emirates Resilience

[caption id="attachment_17611" align="alignright" width="300"] Etihad Credit Insurance CEO: Massimo Falcioni[/caption]

Its database includes commercial information on no less than 320 million business entities worldwide, from the proverbial corner shop to the largest globe-spanning corporate behemoths. In barely three years since the start of its operations, Etihad Credit Insurance (ECI) has claimed a key role in underwriting trade and investment flows out of, and into, the United Arab Emirates (UAE).

Created and expanded in near-record time, the wholly state-owned company is timely helping businesses with a presence in the UAE deal with the economic fallout from the Corona Pandemic. ECI has not only been crucial in limiting the economic damage but is also a much-needed and oft-consulted fount of information on new markets, new opportunities, and the dynamics of the ‘new normal’.

The credit insurance business usually fails to command much attention. If aware of its existence, smaller companies tend to consider the sector as the exclusive preserve of the big corporates; a highly complex and technical pursuit that is, more likely than not, out of financial reach. However, ECI has been working hard to change perceptions by explaining its mission, lowering access barriers, designing bespoke innovative solutions and sharing its knowledge – and database. “We do this by partnering with other actors such as chambers of commerce in Abu Dhabi, Dubai, Sharjah, Ras Al Kaimah, Fujairah, just to mention some of them and creating an ecosystem that includes top local and international commercial banks, multilateral agencies, government Ministries and departments, and a host of others,” says CEO Massimo Falcioni. The Federal government executive is leading the export credit company inspired by the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister who recently stated “Today, we revive the mission of the UAE’s founders. Today, we begin our mission to prepare for the next 50 years that lead up to the UAE’s Centennial. Our duty is to design the UAE of the future for the next generations and to involve our people in this mission just like our founders did.”

Small Is Beautiful

ECI was set up to help diversify the UAE economy away from its dependency on oil as defined in the UAE Vision 2021 five-year plan. The stated goal of reducing the extractive industry’s share of GDP to below 30 percent was met last year (29.5%) whilst significant progress was made to transform the emirates into a knowledge-based economy. Vision 2021 comprises a dozen key performance indicators, including a number that seek to incubate and grow SMEs.

“Today, small- and medium-sized business contribute 53 percent to the UAE’s GDP and provide, moreover, 86 percent of its jobs in the non-oil private sector. We at ECI were already very aware of the supreme importance of SMEs to the UAE economy long before the Corona Pandemic hit. In August 2019, ECI decided to refocus on this sector and prioritise our services to SMEs.” Mr Falcioni is especially pleased with the fully featured online platform that was recently launched to streamline applications, procedures, and facilitate operations.

Innovation plays an important part in ECI’s approach to the credit insurance business. The company is currently putting the finishing touches on a new Shariah-compliant product line that Falcioni thinks will expand, if not revolutionise, the business: “There is a lack of solutions for Islamic businesses that are unable to benefit from our standard product range. We are addressing that deficiency by reaching out to Islamic scholars and by offering Islamic product that is entirely separate from all other ECI conventional operations. This way, our company is able to service the full spectrum of the Islamic business community which represents, excluding banks, no less than 12 percent of global GDP – or some $2.2 trillion.” For its ECI Islamic division, ECI has partnered with the Dubai Islamic Economy Development Centre, Dar Al Sharia, and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), to ensure strict standards are adhered to.

Pandemic

Sitting at the world’s crossroads of trade and financial flows, the UAE economy was initially expected to suffer more than most from the pandemic. However, in its latest report on the country, the International Monetary Fund (IMF) revised its forecast upwards to a relatively modest 3.5 percent GDP contraction for 2020, followed by a vigorous rebound which should end 2021 on a positive note at 4.9 percent increase.

According to Falcioni, trade volumes have proved surprisingly resilient. “Though a very negative development, the pandemic has not slowed down our business. To the contrary, ECI has stepped in, and on the accelerator, to provide businesses hit by the economic downturn the facilities they need to weather the storm. As private sector banks responded to the crisis by reducing their exposure to risk, hurting exporters whilst doing so, ECI moved in quickly to provide alternatives and act as a market stabiliser. We were able to leverage our international AA- credit rating, and the fact the ECI is a fully government company (sovereign risk), to have both local and international banks honour the guarantees we provided, according the BASEL II articles.” says Falcioni.

The CEO explains that UAE-based exporters experienced few difficulties in finding commercial banks willing to discount their ECI insured receivables. However, the company went further and helped exporters tap into new markets and find new opportunities: “Since ECI’s founding, we have been very keen to weave a regional and indeed global network of partners. Whilst this is a very competitive region by nature, ECI is not in the business to compete with others, but to collaborate and offer support. Our network now serves us well and allows ECI to establish new trade routes and help companies replace any business they may have lost due to the pandemic.”

Crucial Role in Recovery

Over the last six months, ECI opened more than 1,600 revolving lines of credit for its customers. Falcioni is pleased that the Central Bank of the UAE put in place a strong monetary response and provided ample liquidity to local banks: “The record stimulus package of more than 256 billion Dirhams from the Central Bank, plus the UAE local governments packages and administrative cost reduction or cancellation, combined with our and other local government authorities proactive approach to supporting cross-border trade, has not only helped to stabilise the economy but also succeeded in creating a moment of respite and a chance to reflect on how to tackle the future.”

Massimo Falcioni is convinced that recent developments have emphasised the importance of credit insurance agencies such as ECI. “Look, some 80-90 percent of global trade is financed, according WTO. Yet, there is a financing deficit of an estimated by the International Chamber of Commerce from $2 to $5 trillion. If we can somehow manage to close that gap, then the global recovery would surely get underway faster. And this is precisely where we as export credit agencies must step in. There is more than enough liquidity in the system, but guarantees are lacking. We, the government export credit companies, can provide those guarantees,” concludes Falcioni.


Hassan Allam Holding: Pioneering Development Firm Built on Trust

In Egypt, the name Hassan Allam is perceived as more than just a company or organisation. It is synonymous with national development and infrastructure. The title rightly conjures up images of larger-than-life construction sites, ambitious buildings, and monumental projects executed on a national scale.

With a history dating back to 1936, Hassan Allam Holding (HAH) is Egypt’s leading company in engineering and construction projects. It specialises mainly in infrastructure, energy, and industrial projects for the Egyptian market and the Middle East and North Africa (MENA) region.

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Over the course of more than 80 years, Hassan Allam has transitioned from a local contractor to a leading global group with a dynamic regional and international position. It has earned a solid reputation of superior technical capabilities through a workforce consisting of professionals of the highest scientific and technical calibre.

With a diversified project portfolio, thanks to its deep experience of identifying and implementing large-scale projects in the infrastructure sector, the company has successfully delivered hundreds of projects. The value of its contracts currently exceeds $5bn.

Awards Tell the Story

The CFI.co award to Hassan Allam and Metito for Best Recycling and Reuse Water Project (Global) 2020 came as a welcome reward for the enormous joint project of creating Al Mahsamma agricultural drainage treatment, recycling, and reuse plant.

The plant has no equal in terms of size and capacity: a million cubic metres each day, and an area of 42,000 square metres of land in the Sinai. The project was also recognised as the Construction Innovation Awards’ Infrastructure Project of the Year for 2019, Best Water/Wastewater Project by Engineering News-Record. It has also been shortlisted for the Wastewater Project of the Year award from Global Water Awards.

The project, with unique structural and technological characteristics, has proved revolutionary in the field of agricultural wastewater treatment. That is partly due to its size and strategic location, but also thanks to the advanced technology used in its implementation.

Al Mahsamma plant located in the Ismailia Governate in Egypt is one of the national projects that has contributed to the state’s long-term plan to provide water resources and achieve sustainable development for the region. The station works to daily re-use one million cubic meters of agricultural drainage water that had previously been disposed of in Al Temsah lake, west of the Suez Canal.

This water will now contribute to the cultivation of some 70,000 acres of land to help the state reach its goals in the reconstruction of the Sinai region and contribute to the creation of job opportunities — all while preserving the natural environment of the area.

The chairman of Hassan Allam Construction, the eponymous Hassan Allam, said he was “extremely proud” to have been selected to contribute to the development of a project of such strategic importance. “A project which we were able to complete in a record 10 months,” he said, “amounting to two-and-a-half million man-hours — with no injuries or time lost.”

That safety and efficiency record is a feather in the Hassan Allam Holding cap — and the contract is testament to the state’s confidence in its capabilities. “Al Mahsamma plant will contribute to combatting water scarcity and will have a resounding impact on Egypt’s water security agenda,” said Allam, “and transform the scope of wastewater treatment across Africa. We are extending our efforts to provide the latest solutions that help to solve water poverty, one of the major regional and global concerns.”

Infrastructure Development

Hassan Allam Holding is distinguished by its work with the concept of integrated projects, as it manages the project from design and construction to operation and maintenance. It has extensive experience in the fields of engineering, construction, and infrastructure. Large-scale engineering and construction projects, the provision of building materials, and electrical and mechanical turnkey solutions have become its stock-in-trade. The company is now taking great strides in the renewable energy sector, and infrastructure investment and development.
The group relies on its own factories to produce building materials to be used in its various projects. It works with its products to localise the industry — and to drive exports.

Because of the magnitude of its projects, Hassan Allam has become a strategic partner of the state in most national projects. It has the lion's share in a number of different areas, including the New Administrative Capital. This transformational enterprise aims to alleviate greater Cairo's increasing densification, and establish a new growth hub for future generations. The most prominent aspect of this project centres on the construction of a number of new ministries and the water treatment plant. Hassan Allam recently completed the Administrative Capital Airport, which included the construction of the airport's major halls and 48 service buildings.

Design for infrastructure projects and work is under way to construct another wastewater treatment plant with a capacity of 250,000 cubic meters/day, a triple-treatment plant.

In 1936, Hassan Allam founded Hassan Mohammed Allam & Co for General Contracting. The limited partnership company was driven by his managerial and technical expertise, while his charisma and ambition led to the company’s increasing popularity with construction workers and engineers.

In 1938, King Farouk was on his way to Ismailia when he was injured in a car accident and was taken to the nearby village of Kassasseen to be treated in a small medical facility. As a result, the King ordered that a hospital be built in the area. Hassan Allam landed his first major contract for that facility, and El Kassasseen Hospital was built on the Cairo-Ismailia agricultural road.

Other early contracts included the Mebara hospital in Port Said, a power station in Damanhur, and the first Egyptian oil refinery in Suez.

Over the decades, Hassan Allam has continued to expand and grow despite political shifts and challenges. The company transformed itself into a leading progressive organisation with an enviable record for delivering — to the highest standard. One of the main pillars that Hassan Allam was founded on was the importance of human connection.

That legacy has been upheld by generations of Hassan Allam leadership, through the maintenance of exceptional relationships with clients based on trust, with ethics engrained in every facet of operations.


A Rewarding Blend of Personal Touch and Present-day Efficiency

[caption id="attachment_17625" align="alignright" width="300"] Member of the Executive Committee and Head of IT: Alexandre Delen[/caption]

Delen Private Bank is an independent Belgian wealth manager specialising in discretionary management and estate planning. Its mission is to protect the wealth of its clients and to achieve sustainable growth of their assets through a prudent yet proactive investment philosophy and via concise estate planning. The bank’s strategy and vision is inspired by five core company values: personal and family-oriented approach, efficiency, sustainability and prudence.

Both asset management and estate planning are tailored to client needs with dedicated relationship managers on hand. To René Havaux, CEO of Delen Private Bank, the personal element cannot be underestimated in the private banking business: “Wealth management is fundamentally an emotional matter. That is why our personal service is so essential. We want our clients to feel at home in our offices. It’s a prerequisite to start an open and tactful conversation about complex or delicate subjects.”

Next to the all-important personal touch, Delen Private Bank offers clients a powerful digital platform of tools (apps and online). Since its establishment, the bank pioneered in using state-of-the-art technology as a means – not the goal – to improve the quality of its services and clients experience. “The client chooses how he wants to enjoy our services: online or the traditional way”, emphasizes Alexandre Delen, member of the Executive Committee and head of IT. “It’s up to the client, not us”,

Since its launch in 2016, the Delen app went through a process of continuous improvement. Starting as a tool to get 24/7 insight in the return and composition of the client’s portfolio, it evolved steadily towards a digital means to manage financial affairs, as well as to communicate effectively and securely with the relationship manager. Recent features include remote signing for contracts and account and credit openings, the digital archive to store important documents, the itsme® log-in and the discrete mode. “We constantly look for new ways to add efficiency, agility and comfort to our clients’ lives”, says Alexandre Delen. “In times where physical contact is not always the best option, the digital channels offer true value. Lots of clients happily use online video calls to keep in touch with us.” In addition, the recently launched Delen Family Services allows the client to get a detailed overview of total assets, including real estate, group insurance contracts and works of art. A family-tree format includes insights into current property rights. That is a perfect starting point for projections, simulations and tax calculations, navigating the client to concise and proactive estate planning.

Delen Private Bank was established by André Delen in 1936, operating as an exchange office. In 1975 his son Jacques Delen, the current president of the Board of Directors, was appointed CEO. In 1992 holding company Ackermans & van Haaren became a shareholder of the bank, besides the Delen family. The company gradually but steadily increased her footprint, both through internal growth and smart acquisitions in Belgium, the UK (in 2011, JM Finn and Co) and the Netherlands (2015, Oyens & Van Eeghen). By the end of 2019, the Delen Group had €43.6bn in assets under management.


BankInvest: The Singular Pursuit of Alpha Powered by ESG

The Nordic markets, including Denmark, have seen a significant increase in the demand for sustainable investment products. Though green bonds and equity products have been widely available for well over a decade, investors have only recently warmed to them. However, the market for ESG-compliant investment products has grown so quickly over the past few years, that transparency is becoming an issue. Investors face mounting difficulties in navigating the expanding universe of products and options, separating those masquerading as green and sustainable from the real thing.

In Europe, Denmark has been pushing hard for the introduction of an ESG taxonomy. As a first step, the country’s monetary authorities plan to launch green certificates tied to existing bonds as a way of determining the exact price of an ESG designation. The German Bundesbank is now considering a similar approach.

At BankInvest, head of responsible investments Mads Berendt Søndergaard notes that companies seem less reluctant to engage on ESG related issues than before: “They know this matter and realise that investors care about this.” Søndergaard prefers constructive engagement to criticism: “It’s one of the cornerstones in our policy. Sustainability is, ultimately, a risk mitigation strategy but can also be used to generate alpha.”

A fund management services company that just celebrated its fiftieth anniversary, BankInvest was set up in 1969 by a group of small- and mid-sized Danish banks to develop a full suite of investment products for their clients. The company is still fully owned by 38 participating financial institutions who distribute BankInvest products and often do so under their own name.

Initially, BankInvest offered only a few Danish mutualised funds. However, the product range has diversified significantly since then. Over the past couple of years, BankInvest doubled the number of products which has increased the administrative burdens placed on the company as well. Søndergaard emphasises that, given the present low-yield environment, efficiency in fund management is key to success.

[caption id="attachment_17630" align="aligncenter" width="900"] Head of Responsible Investments: Mads Berendt Søndergaard[/caption]

For investors looking for alpha in today’s market, ESG is key as well. A major research effort by BankInvest has found that companies implementing robust environmental, social, and governance standards consistently outperform ESG laggards. Mapping corporate performance since the dot-com bubble burst in the early 2000s, and over the next seven market downturns or ‘corrections’, BankInvest has found that regardless investment strategy, ESG added robustness and above-market returns.

“We kept noticing that equities with a good ESG profile performed better than other and wondered if this was merely a coincidence. This is when we decided to look a past performance all the way back to the IT bubble of the late 1990s. Tracking ESG markers through the ups and downs of the market, including major events such as the 2011 downgrade of US sovereign credit risk, the 2015 devaluation of China renminbi, and of course the present corona pandemic, showed the superior performance of companies deploying ESG as a tool for risk mitigation. It also dispelled any lingering doubts as to the usefulness of these criteria in the pursuit of alpha,” says Søndergaard.

In 2008, BankInvest became one of the first financial services providers in Denmark to sign on to the United Nations Principles of Responsible Investment (UN PRI). The company has since joined the UN Global Compact – a commitment to adopt sustainable and socially responsible policies – as well.

“We are eager to join such initiatives, and other, because the quest for solid returns is not just a financial one. ESG has been a long journey, and one that is still ongoing. The interest in sustainable investments is increasing exponentially. Investors demand strategies and products that have a positive impact and contribute towards the sustainable development goals. Thanks to this interest, ESG data has also become more abundant, reliable and transparent. Bond issuers know that the trend cannot be ignored, and it is up to us as fund managers to explain precisely what we do, and how, to all stakeholders.”

Søndergaard summarises that transparency has become ‘quite important’: “We disclose as much information and data about our investment portfolios and strategies as is possible so that investors can make informed choices.” It is what sets BankInvest apart. That, and the fact that the company is one of only a handful of cooperative asset managers left – that is quite unique in the financial industry.


BankInvest CEO Lars Bo Bertram: Strong Demand Ensures Good Returns on ESG-Compliant Investments

Lars Bo Bertram is excited about the future. He notes that over the past few years retail investors have warmed to products that are fully ESG-compliant: “For more than 13 years, ever since BankInvest signed and implemented the UN-backed Principles for Responsible Investment, we have gradually incorporated the pallet of environmental, social, and governance criteria into our decision-making processes. During most of that time, investors showed scant interest in ESG products. However, some two years ago the sentiment started to change and demand for investment products that meet BankInvest’s strict ESG criteria boomed.”

[caption id="attachment_17633" align="aligncenter" width="900"] BankInvest CEO: Lars Bo Bertram[/caption]

Bertram argues that the pandemic has proven the value of excellence in corporate governance: “The mitigation of risk constitutes an important, if not crucial, element of ESG. We now see that ESG-compliant companies usually respond better to the emergency and display a far higher level of resilience than those that have largely ignored these standards. If you really think about ESG, you’ll be better prepared to face any crisis.”

The strong demand for ESG investment products has also pushed up the stock price of compliant corporations: “Returns show that adherence to ESG standards does not negatively affect profitability.”

BankInvest was set up more than fifty years ago by small- and medium-sized Danish banks to develop and manage a broad range of investment products. “We are still 100 percent owned by these banks. Our mission is to design and manage investment products of a quality similar to, or greater than, those offered by our competitors - mostly larger banks,” says Bertram who emphasises that the current low-yield environment calls for excellence and efficiency in fund management: “Over the past years, we have done a lot of work on our cost base. We need to be very cost-effective in order to survive and prosper. Our margins are ok, and our investment products are gaining market share.”

Bertram is especially pleased with the good reception of the new products BankInvest develops for its distributors: “30 percent of our business originates from products that didn’t exist a few years ago. This shows that we are able to respond to market demand. An ECO-labelled global equities fund with a sustainable overlay that we launched last summer has by far become the fastest growing fund in BankInvest’ history.”

The BankInvest CEO prizes the company’s compact size: “To compete with the ‘big boys’ we need to be nimble as an organisation with short lines of communication that connect inhouse expertise and ensure agile yet precise decision-making processes. Whenever needed, we bring in outside experts or enter into partnerships. For example, to design, launch, and manage real estate investment product, BankInvest teamed up with Denmark’s largest pension fund. Thus, we built bridges between users and providers of products. It is what we do – and what we are good at.”


Alpha MOS CEO Pierre Sbabo: Bridging Analytical Metrics

[caption id="attachment_17636" align="alignright" width="300"] Alpha MOS CEO: Pierre Sbabo[/caption]

Alpha MOS CEO Pierre Sbabo can encapsulate his business in one sentence: “With 27 years of technological advances in the industry, Alpha MOS leads sensory analytical market.”

With a clear focus on the food and beverage segment, the company has used research and development as a means to bring disruptive technologies to the arcane world of visual, taste and smell sensory testing.

Alpha MOS is based in France, with subsidiaries in China and the US, and a global distribution network. It has the unusual distinction of being the first company to introduce an electronic nose to the market. As a pioneer in the field of sensory analysis instruments, with the best part of three decades in the sector, the company offers a range of products and analytical services.

This concerns not only the capacity to assess and characterise odour profiles, but also to taste and visual aspects by colour and shape. This allows global companies to bring science to their testing, whether for product development, quality control, or to support manufacturing processes, from raw material to end-product testing.

“Having access to hi-tech but user-friendly instruments to evaluate sensory features allows leading food and beverage companies to complement and strengthen the reliability and the bandwidth of their human panels,” says Sbabo. “Historically, manufacturing plants have relied on human assessors to test odour, taste and visual aspect at the production-line level, or trained sensory panels for in-depth studies during product development.

“Adjusting to a recent shift in consumer behaviour, the market has moved to more frequent releases of new products. This puts extra pressure on human panellists, who need to be trained on a larger number of products and deliver frequent testing on very different products.”

Alpha MOS is able to bridge analytical measurements with human evaluation input. “We can process more samples, faster, with more product variations,” says Sbabo, “and give much-needed flexibility and peace-of-mind to companies.”

Pierre Sbabo’s mission at Alpha MOS has been to strengthen the company's position as a global leader. Before joining Alpha MOS, Sbabo held leadership roles in Europe, Asia Pacific and the US. He has held positions with global corporations such as General Electric Water and Process Technologies, Pentair Filtration and Separation, NSF and — most recently — SPX Flow. There he was in charge of the EMEA food, beverage and industrial segments.


Alpha MOS: Improving Human Life

Alpha MOS, a world leader in the design and development of instruments for sensory analysis, has gone through significant changes in the last few years. The company’s CEO, Pierre Sbabo, explains how an aggressive strategy to expand the business is already beginning to transform Alpha MOS into a leader in the Food and Beverage sensory testing.

Headquartered in Toulouse, France, with subsidiaries in the United States and China, Alpha MOS is an expert in organoleptic testing, offering fast and reliable sensory measurement solutions for quality control and product development support to the Food and Beverage market.

In this area, human sensory panels have historically been used to control and assess the sensory characteristics of food products. While valid, this model is being challenged by changes in consumer habits. Food & Beverage companies need to release more new flavors and products, more frequently. Human panelists are under pressure to adjust to the sheer number of tests to be performed and the variety of flavors to monitor.

“With our solutions, we offer an enhancement of this traditional method. Our equipment is faster, more reliable and offers lower cost of operations. Our task is to help reduce the burden on sensory panels, bring a higher degree of repeatability and reliability in the tests, and allow human experts to focus on disputable samples” said Pierre Sbabo.

Established in 1993, Alpha MOS was the first company to market electronic noses. Since its creation, it has invested heavily in research and development and later developed instruments for assessing taste and visual aspect. It holds several patents covering detection technologies and methods or data processing. Today, the company designs and sells a range of high-tech instruments for testing the sensory characteristics of raw materials up to end-products, which gives it a unique positioning and a strong competitive advantage.

In addition to technical and commercial teams in Europe, North America and Asia Pacific, Alpha MOS has a network of more than 30 distributors worldwide. Alpha MOS is publicly traded on Euronext Paris – the Paris stock exchange.

In 2017, Jolt Capital, a high-tech investment fund headquartered in Paris, and Ambrosia Investments, a Food and Beverage investment fund from Luxembourg, became majority investors in Alpha MOS.

With their support, the company’s strategy pivoted. Alpha MOS decided to strengthen its focus on the Food & Beverage sector and accelerate the development of new solutions that meet F&B production facilities’ tough requirements. This is a key step on the road to becoming a leader of F&B sensory testing.

Innovation Driven

To support this vision, Alpha MOS has invested millions of euros in Research and Development to meet rapidly changing market expectations and develop innovative solutions in sensory analysis. The latest addition to its product range is the Heracles NEO electronic nose that features increased performance for smell analysis, designed to save testing time while increasing analytical capabilities.

The Heracles NEO range was introduced with a large selection of configurations and options covering the needs of laboratories and test centers in the Food and Beverage market. It also meets the testing needs of adjacent segments like functional food, nutraceuticals, or food packaging. The Heracles NEO features larger sensory analysis functionalities and tools, stronger performance and an increased sensitivity that set a new benchmark for the industry.

Bringing more innovation to the market, the Heracles QA offers customizable solutions for off-taste detection in Food and Beverage production, for example bottling or packing lines in beverage plants.

Going through a series of blind tests at a world leading beverage company, the Heracles QA has proven its higher reliability and sensitivity with a success rate 20% superior to human panels. In these validation blind tests, Alpha MOS Heracles determined if a beverage meets a given taste profile, thus eliminating the risk for testing errors and the associated subjectivity of the results. The beverage company is now using Heracles units to support and strengthen their sensory testing teams.

“The QA solution is based on client-customized equipment offering a simplified user interface, that allows operators to detect off-taste products and reduce customer complaints. We are now working on deploying these QA solutions with several other key accounts.”

[caption id="attachment_17640" align="aligncenter" width="900"] Alpha MOS: Offices in France[/caption]

Improving Human Life

Alpha MOS instruments have long been used in industrial applications as well as in academic and research institutes. Their analytical capabilities and performance make them ideal tools for advanced investigations and research studies where organoleptic testing is involved. On the other hand, their easy-to-use and user-friendly data processing based on AI completely fulfills the needs for fast and reliable testing methods in production quality control, especially in the Food and Beverage industry, but not only.

“We see a growing demand for natural ingredients evaluation and qualification / standardization of taste. Raw materials adulteration, or end-product shelf life is also a growing concern. Production processes have become more complicated with brands developing products in partnership with independent bottlers or packers. Quality assurance and the consolidation of data require more automation, which creates new opportunities for Alpha MOS in sensory testing.”

The CEO added: “We have accumulated 27 years of experience in sensory analysis that have resulted into top-quality solutions, both hardware and software. By combining our AlphaSoft software suite with our unique AroChemBase data base, what we create is an odor analysis software module that can characterize nearly 100,000 molecules. It links 2,000 VOCs (Volatile Organic Compounds) to sensory attributes. This is the world’s largest reference data base of its kind.”

“Our vision is to offer sensory testing solutions to improve human life, anytime, anywhere. Alpha MOS will continue to aggressively pursue the goal to become the sensory analysis expert in Food & Beverage and adjacent segments.”


FCI: Factoring Has the Wind in Its Sails — and a Long and Successful History Behind It

There is nothing complex about factoring. It is simply a unique blend of services designed to ease the traditional problems of selling on open account terms.

[caption id="attachment_17647" align="aligncenter" width="900"] Factoring for institutions[/caption]

Factoring is based on the idea of selling or assigning a business’s outstanding receivables (sales invoices) to the factor and receiving a set of trade-related services. These typically include investigating the creditworthiness of buyers, assuming credit risk, giving 100 percent credit protection against debtor write-offs, providing collection and management of receivables and provision of finance through immediate cash advances against outstanding eligible receivables.

Factoring: Suitable for SMEs?

Traditionally, a factoring company provides liquidity to an SME based on the eligible receivables assigned to it. The factoring company may offer a form of credit protection against the default risk of the client’s customers as well, providing additional capital to end-buyers, many of which are also SMEs. Ultimately these companies offer liquidity in the supply chain that normally would unavailable otherwise, mainly aimed at SMEs. The controls that factoring affords allow financial institutions to finance further into the supply chain, offering debt capital.

Factoring: a low loss History?

The factoring industry has enjoyed a long history with a low record of credit losses and continuous stable growth. As an alternative form of traditional trade finance, factoring is one of the few mechanisms within the wider financial services industry which allows a financial institution to purchase the assets from an SME client. In this case, that includes the account receivables and all of their underlying rights, and the right of collection of payment from the debtor/customer. This element strengthens the likelihood that the factor will be repaid as the source is the client’s customers, who typically are much stronger.

The receivables assigned to the factoring company are generally diversified and of short-term duration (normally less than a 90-day period). In addition, the financing provided to the seller is contracted on a flexible basis, often providing leeway for the factoring company to exit quickly in a deteriorating financial condition scenario. That is true whether it stems from the debtor or the seller, which in part explains the low loss record for the industry (EUF White Paper 2019).

Factoring companies also use strong credit metrics to protect against commercial default or insolvency. They become secure from the assignment of the receivable from the client and from the intricate management system of alerts in case of fraud, dilution, or concentration risk.

An explosive Rise in Factoring

Over the past two decades, factoring has increased nearly six-fold, from €500bn to nearly €3tn, a nine percent CAGR. But the largest growth spurt took place during the financial crisis in 2009, when the factoring community took up the slack as banks pulled out of financing arrangements.

Looking back at past recessions, factoring has a strong record of accelerated growth, due to SMEs looking for alternative forms of financing against receivables. It also stemmed from a need for credit protection against debtor default or insolvency, and the ability to obtain funding as sales increased.

Fast-forward to today, as the Covid-19 crisis impacts most economies, and there is another significant opportunity for the industry. Factoring will be in high demand during — and after — the crisis. Companies will seek alternative funding sources and try to mitigate the risk of receivables. Even with the predicted rise in bankruptcies and the many unknowns, there is likely to be a surge in volume next year.

That doesn’t mean that the community shouldn’t prepare for a challenging period ahead; the industry should return to basics, focusing on maximising risk controls.

Why do factoring companies join FCI?

FCI acts as a trade association supporting the growth of receivables finance around the world. It offers its members a platform to conduct cross border factoring in a secure manner. A proprietary communication system called edifactoring.com is a sound and secure means for members to issue factor guarantees, send invoice data, issue dispute notices, and provide payment advice.

FCI recently announced FCIreverse, a global supply chain finance (SCF) initiative, giving members access to a global platform to on-board anchor buyers and provide early payment to global suppliers. It is a place to network, where senior executives meet annually to exchange views and ideas.

In addition, FCI is a rule-making body for the open-account receivables finance industry, and has been for over 50 years. The General Rules of International Factoring (GRIF) is the legal basis for nearly all cross border business transactions, and the legal framework has been accepted by almost every major factoring company. FCI Academy provides e-learning courses, regional seminars, a degree programme in international factoring, consultancy advice, and operational guidance. FCI offers a robust education platform, accentuated by innovative marketing and promotion, and led by an engaged and dynamic secretariat based in the Netherlands.

Conclusion

Factoring is a straightforward and quite simple form of financing based on a receivable/invoice originated by the SME and directly linked to the real economy. Factoring has proven to be a go-to alternative to classic bank lending and has helped to alleviate much of the burden caused by the recent credit crunch, especially for SMEs.

Factoring is considered a low-risk form of financing, thanks to its direct connection to the real economy via the purchase or transfer of receivables for delivered goods and rendered services. It will be in high demand as banks pull out of credit facilities and companies look for new funding sources.

With the significantly increased risk environment, companies will seek to mitigate the risk of receivables. However, this asset class will be tested as never before; its secure nature and the controls that factoring affords will make it more attractive.

And for those using history as a milestone, factoring certainly has the winds in its sails.


Peter Mulroy, Secretary General of FCI: Champion for Sustainable Development and Growth of the Open Account Receivables Finance Industry Globally

[caption id="attachment_17643" align="alignright" width="300"] FCI Secretary General: Peter Mulroy[/caption]

Peter Mulroy, Secretary General of FCI, has dedicated his career to supporting the global growth of trade.

Mulroy was appointed Secretary General in July 2013 and in his seven years he expanded the footprint of the association from 72 to 95 countries, increased membership from 250 to nearly 400 members, decentralised the organisation by creating six regional centers, exceeded all growth targets and led the merger of the two largest factoring associations to create a single voice representing the interests of the members and stakeholders of the global factoring and receivables finance industry.

As secretary general, Mulroy assists financial institutions, SMEs, corporates, and other stakeholders to provide legal, operational, credit risk and compliance guidance that specifically relates to open account receivables finance business. He also helps new entrants establish factoring initiatives and supports governments, regulators, and central banks to provide training and guidance.

His aim is to ultimately create strong legal and regulatory national frameworks to protect the interests of investors and users of the service. Mulroy addresses global audiences on the subject of receivables finance and international trade, and has earned his place as an ambassador for the industry.

"His aim is to ultimately create strong legal and regulatory national frameworks to protect the interests of investors and users of the service."

FCI, previously known as Factors Chain International was established in Amsterdam in 1968 as a non-profit global association for factoring and receivables finance companies. Today, it is recognised as the world representative supporting the interests of the industry. With close to 400 members in 90 countries, FCI members account for nearly 90 percent of global cross-border factoring volume.

FCI supports the industry with three major pillars:

Connect: the business network supports cross-border factoring activities and reverse factoring business through which its members co-operate as export and import correspondent factors

Educate: FCI promotes and develops best-practice in domestic and international factoring, and related open account receivables finance products

Influence: FCI promotes and defends the industry with stakeholders and policymakers worldwide

Prior to joining FCI, Mulroy was managing director of CIT’s factoring business unit in the US, a $50bn-plus financial services company. At the time, it was the largest factoring company in the world in terms of global volume. Mulroy also served on CIT’s management committee, supporting the company’s global growth strategy.

He came to CIT through the acquisition of the factoring unit of SunTrust Bank, where he had developed its international factoring business. He has worked and lived in the US, Europe, and the Middle East. He graduated from Rutgers University in New Jersey, studied at the Universität Konstanz in Germany, and earned his MBA from Thunderbird School of Global Management in Arizona.

Peter Mulroy can be reached at fci@fci.nl and more information can be found at www.fci.nl


Toronto Finance International: Toronto Takes Its Place at the Head Table of North American Finance

[caption id="attachment_16047" align="alignright" width="300"] President and CEO: Jennifer Reynolds[/caption]

Toronto is North America’s second-largest financial centre, and is fast becoming a destination of choice for companies looking to establish a presence in North America.

The city is well positioned to capitalise on its world-class talent in financial services and technology, as it is situated in the continent’s third-ranked tech cluster.

Toronto Finance International (TFI) is a public-private partnership between Canada’s largest financial services institutions and the government. It champions the city, the country, and the possibilities both offer.

“Our mission is to drive the growth and competitiveness of the Canadian financial sector and establish Toronto’s prominence as a leading international financial centre,” says Jennifer Reynolds, President and CEO of TFI. “Half of Canada’s outward foreign direct investment is from the financial services sector, and it boasts the second-fastest growing source of services exports. The sector is an increasingly important part of Canada’s global economic footprint.”

Over the past 10 years, Toronto has shown the fastest growth rate for employment in the North American financial services industry. In 2018, the city ranked third globally for the proportion of employment within the financial services sector.

This growth has been complemented by the development of the region’s innovation ecosystem. From 2010 to 2018, Toronto had the world’s highest growth rate for FinTech investment. Financial services is the largest contributor to Toronto’s GDP, and a key pillar to the Canadian economy.

Canada’s three largest life and health insurers rank among the world’s top 15, and the country’s pension funds are ranked third globally by assets. The Canadian pension funds are well known and highly regarded by international investors.

“We have a welcoming culture that attracts talent from across the globe and our economy thrives on our diversity of talent and people from a wide variety of backgrounds,” says Reynolds. “In 2019, we welcomed over 340,000 immigrants to Canada, the highest number in more than a century. We hope to continue this momentum of attracting top talent to Toronto.”

Reynolds joined TFI in 2017 and her 20-year career in the financial services industry has included senior roles in investment banking, venture capital, and global risk management. Prior to joining TFI, she was the President and CEO of Women in Capital Markets (WCM), Canada’s largest industry association and advocacy group for women in the financial sector.

The Toronto native graduated with a Bachelor of Arts with a double major in Economics and Political Science from McGill University, from where she also received her MBA. She is also a graduate of the Harvard Business School Women's Leadership programme.

In addition to her role leading Toronto Finance International, Reynolds is a director on the boards of Citibank Canada, the Canada Development Investment Corporation (CDEV), and the Women’s College Hospital Foundation. In 2015 and 2017, she was named a Women's Executive Network (WXN) Canada's Most Powerful Women: Top 100 Award Winner.


CEO & General Manager Ugo Loeser of ARCA Fondi SGR: Shaping the Future of Asset Management with History of Experience and Reliability

Italy’s ARCA Fondi SGR is an asset management company that is authorised to manage the individual portfolios of institutional clients.

The company was born from the experience of ARCA SGR, founded in 1983 by 12 popular banks. Today it is owned by BPER Banca (57.061 percent), Banca Popolare di Sondrio (34.715 percent) and by other major Italian banking institutions. With assets under management (AUM) of around €32bn spread across mutual and pension funds and institutional accounts, and with a client base of over 800,000 investors, Arca has established itself as a leading national asset manager.

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The composition of the AUM is divided into €25.7bn in mutual funds (market share 2.9 percent at March 2020); €3.8bn ARCA Previdenza Open Pension Fund (market share 18 percent at June 30, 2019); €0.5bn under management for institutional clients, and €2.2bn as investment manager at Sidera Funds SICAV (Société d'investissement à Capital Variable), a publicly traded, open-end investment fund structure offered in Europe.

A New Type of Governance

ARCA Fondi SGR was one of the first companies to adopt the Protocollo di Autonomia (protocol of autonomy), aimed at the implementation of a sound and adequate company framework to manage conflicts of interest to protect subscribers and safeguard management decisions. It was drawn up by Assogestioni, an Italian association of asset managers. Continuity and autonomy in operations and governance serve as a guarantee that the protection of the customer's interests will always be ARCA Fondi SGR's primary objective and priority.

Synonymous with Reliability

After almost 40 years of operation, Arca Fondi SGR is today one of the best-known companies in Italy. Thanks to its ability to generate value over time, it is recognized as a reliable partner. One of its main strengths is its extensive network of distributors, consisting of some 100 banks and financial institutions scattered across the country. The close relationship with its distributors resulted over the years in a successful partnership, especially for the customers who entrust their savings to Arca.

Innovative Products for All Needs

Since the first products launched on the Italian market, Arca has been able to introduce innovative investment solutions capable of satisfying different types of investors. Arca has been the inventor of Arca Cedola, fixed-horizon, coupon paying funds, which have been hailed as the greatest product innovation of the past 12 years on the Italian market. Arca Fondi is a market leader in PIR Funds (Piani Individuali di Rispamio), a segment dedicated to investments in the Italian "real economy”.

In 2019 Arca Fondi signed the United Nations Principles for Responsible Investment (UNPRI), which led to the creation of several ESG Funds and an innovative ESG Rating system. Thanks to important investments in recent years, an ecosystem of innovative services has been created to support customers and partners. The website, an app, a chatbot and an educational blog are just some of the digital tools that have collected awards for Arca Fondi over the years.

Since the first products launched on the Italian market, Arca has been able to introduce innovative investment solutions capable of satisfying different types of investors.

Awards

In recent years ARCA Fondi SGR has received several awards for Italian mutual funds and pension funds, including CFI.co’s Best Emerging Markets Debt Manager (Europe) award in 2015, 2016, 2017, 2018 and 2020 and CFI.co’s Best Pension Fund Scheme - Italy 2020.

Constant Growth

Arca has acquired OPTIMA OICRs (AUM €927m); acquisition of Vegagest OICRs (AUM €540m) and BPVI OICRs (AUM €793m) and Institutional mandates (AUM €1.074m). The company has completed acquisition of Carige OICRs (AUM €3.260m), a pension fund (AUM €422m), and investment advisory on segregated account.

ARCA Fondi SGR aims to create added value for its clients on a continuous basis. For precisely this reason, a new range of ESG funds was launched to satisfy an increasing number of investors who are concerned with sustainability. Currently, the range includes two equity and two flexible funds, but new solutions of this type are due to emerge. At the base of the ESG investment process is an internally developed rating system which allows all issuers of shares and bonds to be classified according to their compliance with ESG criteria.

CEO and General Manager Ugo Loeser

Ugo Loeser has been the CEO and general manager of ARCA Fondi SGR since 2011. He has a degree in Economics and Social Sciences from the Bocconi University of Milan, and prior to joining ARCA Fondi he had experience in investment banking and management consulting. Loeser was director at Finlabo SIM and Banknord SIM, a partner at Bain & Company Italy (promoting the practice of asset and risk management), and was a senior strategist for the European market of derivatives on fixed income at Paribas.

Loeser was also the executive director of Fixed Income Research at Goldman Sachs International, and is a member of the executive board of Assogestioni.


Evan Harvey, Nasdaq: The Board Perspective on ESG

Sustainability is a moving target. Though we might want uniformity, unanimity, and harmonisation — of standards, disclosures, and data points — there is mostly disorder. The signal of value is strong enough to hold our interest, but all the surrounding noise limits our understanding.

Investors have certainly heard the signal. Firms both large and small seek to leverage sustainability in some way, to integrate ESG data into an outperforming, long-term portfolio. Recent research continues to demonstrate that ESG-themed investments can match market returns (Morningstar, 02/19/20) or even exceed them (Financial Times, 06/13/20). And if ESG returns are overhyped (Institutional Investor, 08/20/20), they are still driving a $30tn investment boom.

How are other stakeholders analysing and integrating sustainability issues into their decision-making? Certain aspects of this trend directly impact R&D, valuation, performance, transparency, and culture — which is why corporate boards have been increasingly involved. As of 2019, 43 percent of all Russell 1000 companies had already developed formal board oversight of ESG issues (Glass Lewis).

As a report from Deloitte’s Center for Board Effectiveness bluntly put it: “Directors need to understand the environmental and social impacts on the business strategy and risk profile of the companies they serve.”

"Today, best-practice is increasingly synonymous with ESG among and overarching concepts such as corporate purpose and a multi-stakeholder approach to governance."

I wanted to dig into this topic with an expert, so I turned to my Nasdaq colleague Kellie Huennekens. Huennekens worked at EY for many years and now supports our efforts to drive board excellence through (among other things) an integrated approach to ESG expertise, insights and technology.

We’ve heard about certain climate initiatives crossing the 50 percent vote mark with investors and companies lately. Did any specific vote during the 2020 proxy season surprise you?
Absolutely. It’s been an unusual proxy season in so many ways. Growing urgency on climate change is galvanising action. Oil majors announcing net-zero ambitions. Continuing growth in investor-company engagement. And growing investor support for shareholder proposals on climate risk.

For me, the biggest surprise (at least as of early July) has been the 70 percent support for a shareholder proposal on diversity and inclusion. While vote support for shareholder proposals in general can vary based on the specific ask, the investor base and the company’s specific situation, this is an unusually high vote and appears to reflect current events.

COVID-19, the Black Lives Matter and MeToo movements, and the recent Supreme Court ruling on LGBTQ protections sharply focused attention to one key question: how are companies providing all workers with equal opportunity and equal protection?
To be clear, the prioritisation of diversity and inclusion — like climate — has been decades in the making, reflecting attention to systemic, societal and economic considerations that are foundational to economic growth and long-term corporate value. It just so happens that human capital and climate also are going to be two key themes running through many post-annual meeting engagement conversations and the run-up to proxy season 2021.

What can proxy filings tell us about the current state of company practice, management, and reporting? Have you noticed an uptick in certain subject areas, such as climate change, gender and diversity, and so on?
A: While the numbers for 2020 are still coming in, an early look at proxy filings found that boards are demonstrating greater involvement on ESG. For example, proxy statements are increasingly including a “letter to shareholders” from the CEO, board chair or the full board to showcase business and ESG related achievements. Nearly all reviewed companies participated in investor engagement (98 percent, up from 92), 92 percent featured their ESG initiatives (up from 82 percent), and 86 percent said investor engagement covered climate change and environmental sustainability (up by 33 percent).

As part of the growing focus on ESG and shifting roles and responsibilities, some board committees have been renamed. For example, Nasdaq now has a “Nominating & ESG Committee.” Compensation committees, too, are increasingly codifying oversight responsibility of certain human capital matters – extending beyond the CEO and C-suite.

And they are adjusting the name of the committee to emphasise the human capital element: the Compensation and Human Capital Committee, for example. We’re concurrently seeing an increase in corporate disclosures about director skills and qualifications relating to environmental sustainability and human capital matters.

These are all trends that emerged over the past decade. One thing to watch is to what extent these changes accelerate.

Where do companies turn for guidance on communications with investors, either through the proxy or in other ways? Are there clear standards of disclosure when it comes to these emerging subject areas?
US companies can be incredibly innovative in formal corporate filings as well as other communications. This may be in the form of reporting or dedicated websites housing a company’s environmental and social metrics and related narratives. There may be videos where specific committee chairs explain the work that they do and their priorities in carrying out this work.

Smaller companies are demonstrating the creativity, too. Sometimes you’ll find a single sentence highlighting the board’s commitment to diversity, which includes the percentage of board members who are diverse in terms of gender or race/ethnicity.

The richness of US companies’ voluntary disclosures can be inspiring, but it’s also messy in that they vary by company. This used to be something that was associated only with the very largest companies. Now a growing range of companies are voluntarily disclosing on topics of interest to their investors and other stakeholders.

My advice to companies is to look at largest five companies in their sector to see what they’re doing in terms of the proxy statement, their sustainability report/website, and governance documents. There’s a wealth of useful information there – in particular, about the direction of shifts in corporate practices and corporate disclosures.

We hear so much about the proxy system being potentially (or even purposefully) contentious; investor engagement is often relegated into the legal and risk category. Are US companies using the system to integrate feedback effectively, or are they using merely it to defray criticism?
Historically, “good governance” was seemingly built on securities law alone. After Enron and WorldCom, we saw companies voluntarily help define best-practice through their own practices. Mandatory say-on-pay led to a reshaped investor engagement landscape and greater influence by investor stewardship teams. More recently, passive investing and ESG (both as an investment thesis and governance strategy) further accelerated ongoing shifts.

Today, best-practice is increasingly synonymous with ESG among and overarching concepts such as corporate purpose and a multi-stakeholder approach to governance. Leading companies are living this and a growing number of other companies are joining them. The next question is: when will “best practice” become “mainstream practice”?

Individuals divided on ESG agree that: 1) Companies should disclose on material ESG factors and 2) this disclosure should be vetted to mitigate inconsistent messaging and “greenwashing”.

My recommendation to companies is that they consider reaching out to key internal (business and functional operations) and external (institutional investors, customers, suppliers and employees) stakeholders to learn what they consider to be material to the business. From this starting point, common themes or categories that the company should consider monitoring and disclosing on becomes clearer.

About the Author

[caption id="attachment_11036" align="aligncenter" width="219"] Evan Harvey[/caption]

Evan Harvey is the Global Head of Sustainability for Nasdaq. He also serves on the Board of Directors for the UNGC Network USA and the Global Sustainability Standards Board for the GRI.