Adhering to non-financial reporting requirements—especially with the increasingly stringent European rules surrounding sustainability, and Environmental, Social, and Governance (ESG) reporting—is a substantial concern for those engaged in fund and asset management.
This task becomes more intimidating in the face of opposition to climate policies within certain political circles. Nevertheless, it's not an insurmountable challenge. The comprehensive annual report of a major Reserved Alternative Investment Fund in Luxembourg exemplifies this.
The report pertains to the Anthos Fund II Sicav-Raif fund, launched two years earlier by Amsterdam-based Anthos Fund & Asset Management, which the Brenninkmeijer family controls. For context, the Brenninkmeijers are the entrepreneurial family behind the 1,500-store C&A retail fashion chain and the Swiss-based holding company Cofra.
Anthos' Luxembourg annual report underscores a vigorous effort to meet regulatory standards. It comprises 31 pages of traditional financial reporting, and 87 pages of sustainable finance disclosures. The Luxembourg-based fund plays a vital role in the shift to a multifamily office that commenced last year.
Functioning as an umbrella for six sub-funds, the Anthos Fund II caters to families wishing to invest alongside the Brenninkmeijers. It began with three funds in 2021 and added three more in January 2022. The 2022 annual report, filed on 2 August, reveals all investments and asset values for these sub-funds, providing a fascinating glimpse into the Brenninkmeijers' investment strategy.
By the close of December last year, assets held totaled €1.21 billion, after attracting with €1.05 billion in new investments in 2022. Anthos CEO Jacco Maters disclosed in May that the firm attracted ten new clients in its first year as a multi-family office and expects further growth in 2023. More than mere transparency, the detailed reporting in Anthos Fund II signifies a profound commitment to sustainability.
Anthos' transition to a multi-family structure reflects an urgency to foster a sustainable society. The firm targets “like-minded institutional investors” who prioritize sustainability, resonating with the family's enduring practice of nurturing sustainable economic and social value.
To comply with the EU's Sustainable Finance Disclosure Regulation (SFDR), Anthos Fund II uses the EU’s ESG templates and Principal Adverse Impact (PAI) indicators for all its sub-funds. The Anthos Diversified Fund reported that 11% of its assets were sustainable, and details of classifications ranging from 'dark green' to 'brown' shed light on the fund’s sustainability spectrum.
A beacon for the investment community
Anthos' meticulous reporting serves as a guiding light for transparency and sustainability within the investment community. By embracing EU’s SFDR rules and taxonomy, and by illuminating financial and non-financial aspects, Anthos provides a blueprint for those seeking to align investment practices with family values-inspired sustainability.
In an environment where regulatory mandates are often seen as hindrances, Anthos proves that they are not only attainable but also a chance to reinforce a commitment to sustainability and social responsibility.
While Anthos' efforts are commendable, this author has a simple recommendation: release the 122-page annual report filed with the LBR as a searchable PDF. Although not legally required, it would facilitate all stakeholders in benefiting from this higher transparency level. It might need a call from Amsterdam to a Luxembourg-based partner who hasn't yet recognized this particular value.
In Flux is a regular column on Investment Officer Luxembourg shedding light on the Luxembourg financial ecosystem. Financial journalist Raymond Frenken is Editorial Manager of InvestmentOfficer.lu. He has followed international financial markets and EU financial regulation for more than two decades.