Investment Approach

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Attractive financial return & meaningful development impact
Our investment approach

Each investment is made to generate an attractive financial return and meaningful development impact.

FMO has been investing for impact and profit since 1970.

Its long term profitable track record proves that these two can go hand in hand.  FMO’s high quality portfolio is testament to its institutional quality. Deal selection, due diligence and portfolio management can be considered best in class.

The result is a stable return and profit even in challenging economic times.

The FMO philosophy

FMO believes that a world in which nine billion people can live well and within the planet’s resources by 2050 is possible.

To achieve this FMO believes that economic growth must be coupled with social and environmental considerations so that it is sustainable in the long term. By focusing on three key sectors: financial institutions, energy, and agribusiness, FMO increases access to goods and services that are drivers of economic growth.

FMO partners with its borrowers and investee companies on environmental, social and governance improvements. Impact is achieved through investments and by sharing knowledge and network.

Economic growth must be coupled with social and environmental considerations so that it is sustainable in the long term.

FMO has the scale and qualities to make a difference. Yet the huge need for long term finance in emerging markets cannot be met by development finance institutions alone. Involvement of commercial investors is essential. This is why FMO Investment Management creates solutions for qualified investors to co-invest in new deals sourced by FMO.

As FMO Investment Management provides access to investments made by FMO, we follow FMO's investment approach before anything else. In addition, for each fund or mandate serviced, we apply specific fund criteria agreed with our partners and investors.

FMO's approach is based on two pillars and each investment must contribute to both:

  • Financial return, which is achieved through thorough opportunity selection in combination with solid risk management, underpinned by FMO’s regulated bank status.
  • Impact, by selecting opportunities that support jobs and/or reduce greenhouse gas emissions, whilst meeting FMO’s high environmental, social and governance standards.

We believe commercial viability and sustainability can go hand in hand, as demonstrated by FMO’s profitable track record and the top sustainability rating among a growing peer group of financial institutions, assigned by Sustainalytics.

In practice

  • ESG and Active Engagement

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    All funds advised by FMO Investment Management benefit from FMO's proven and pragmatic approach to sustainability. 

    Experience has shown that those who incorporate sustainable environmental, social and governance (ESG) practices into their business have enjoyed stronger financial results and long-term viability. more

  • Impact Indicators

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    FMO evaluates the impact of its investments on a systematic basis - assessing the business success of the project or company, but also the extent of impact it has made on the local economy, community and environment. more

  • Investment Policies

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    FMO's investment policies and processes are rooted in years of experience in making sustainable investments. FMO seeks adherence to global standards and engage with other market actors to further finetune and evolve its approach. 

    FMO Investment Management's investment processes follow FMO's policies and procedures adding only additional steps to the existing process for decision making at fund level.
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  • Sustainability

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    As FMO Investment Management sources only investments sourced by FMO, the FMO Sustainability Policy is applicable on all investments it advises upon. 

    The FMO Sustainability Policy guides FMO's contribution to sustainable development as framed by the Sustainable Development Goals (the SDGs). more

  • Exclusion list

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    FMO Investment Management provides access to investments made alongside FMO.   

    FMO and its clients will not finance any activity, production, use of, trade in, distribution of or involving the items on the exclusion list. more