Financial investment activities and investment strategy
An Investment Committee, appointed by the Hempel Foundation’s Board of Trustees, prepares decisions on the Foundation’s financial investments. Investments in bonds, shares and other financial instruments are managed by 4-5 professional external portfolio managers. This split is intended to increase the risk-adjusted net return of the total portfolio.
In order to better manage risk and generate sustainable medium-term returns, the Hempel Foundation has certain requirements for portfolio managers. They are expected to follow the UN’s Principles for Responsible Investment (UN PRI) or make investments according to corresponding principles taking into account other assessments regarding environmental, social and governance (ESG) factors. The Board has set down overall guidelines and policies for investing in different types of assets, such as different kinds of properties, bonds, shares and alternative investments.
A conservative financial investment strategy is adopted, and a robust portfolio is managed with a limited risk appetite. The majority of investments are in listed securities that can be redeemed within a few days, and the financial portfolio of the Foundation is considered part of the financial instruments for the Hempel Group.
The Investment Committee also advises Hempel Invest A/S on its investment activities including shareholdings, private equity and properties.
Properties
The Hempel Foundation is located in a property in Amaliegade 8 in central Copenhagen, Denmark. The Foundation owns the building and has a financial income from tenants.
The Hempel Foundation is also the owner of the property Lundtoftegårdsvej 91, Lyngby, Denmark where the Hempel Group headquarters and an R&D department are located. In January 2018, Hempel Invest A/S, which is 100 per cent owned by the Hempel Foundation, acquired a site opposite the Hempel Group’s current headquarters to construct additional facilities for the Hempel Group completed in 2020.
Hempel Invest A/S is also the owner of shareholdings in two forests located in Denmark and a major property company listed on the OMX stock exchange.
Social impact investments
The Hempel Foundation made its first social impact investment, Den Sociale Kapitalfond Invest (SKFI), in 2017. SKFI is a new Danish fund targeting and investing in social corporations in Denmark with the intention of generating social and environmental impact alongside a financial return.
Apart from the financial return, there are two reasons for this investment: To empower marginalised people through the creation of jobs, training positions, education and other enabling services and products; and to invest in the first social impact investment fund in Denmark, which can act as a model for social impact businesses in the future.
Learn more about our financial (and other) activities in our annual report: