Emissions Reduction Market Fund: Acciones & Valores Expands Sustainable Investments

Equity brokerage firm Acciones & Valores has activated the Emissions Reduction Market Fund (Pre) by March 31, introducing a new tranche of its private equity offering focused on sustainable investments. Investors can commit up to $10 million, with an average annual cash return around 17%, given the fund’s structure as an investment vehicle. Capital withdrawals and accrued returns will be available until 2026. Santiago Quintero, head of the firm’s assets division, explained that Fore aims to manage $20,000 million in assets under management, a target to be achieved gradually. He added that the investment vehicle opens the door to sustainable alternative funds and portfolio diversification, noting that funds placed there are less exposed to international events such as the conflict in Ukraine. What is the purpose of this fund? The fund began in July of the previous year, following a development period of about two years during which the product was shaped around non-traditional assets such as certificates of deposit, equities, and fixed-income securities, with a stronger emphasis on alternative products. In this universe, real estate funds that invest in private equity are part of the landscape. What are they investing in? The fund raises capital through carbon emission reduction certificates, focusing on reducing greenhouse gases in the atmosphere, a goal that resonates globally today. To date, the program has drawn in approximately $2.8 billion in investments. What is profitability? This is a closed fund with a maturity set for 2026, meaning those joining now should not expect returns before that year. So far, the fund has delivered an annual cash return above 17% for investors, which remains favorable even amid high inflation. Is it possible to make partial withdrawals? Because this is an unconventional asset, it does not offer the same liquidity as stocks. The portfolio’s medium-term nature targets the CPI plus 12% as an average figure, making full withdrawal before maturity unlikely. Can this fund be understood as an active refuge from the situation in Ukraine? These investments operate independently from traditional markets. The current climate is driving economies to rely less on fossil fuels like oil. Europe has been pursuing an energy transition for years, so it is reasonable to expect substantial investment in other electricity generation sources going forward. The team believes such alternative funds, not tied to conventional market variables, offer a solid option to diversify a portfolio. Clients are enrolling with $10 million today, a notable shift since investment products traditionally targeted large buyers such as pension funds or insurers, where minimums often exceeded $500 million. Where is the investment made through the Emission Reduction Market Fund going? The fund concentrates on projects in Colombia, with notable initiatives in Orinoquía, the Amazon region, and Cundinamarca. Will these vehicles grow in the medium term? There is a belief that the capital needed to support investments in environmental impact vehicles will rise as investors see meaningful returns and social benefits. When a product delivers solid performance and measurable environmental outcomes, more institutional participants are expected to join. How can this fund be accessed? Interested parties can connect via the Transactions and Securities page of the brokerage. Like other stock market investments, regulatory guidance is provided at the outset and all tracking data is shared. What is the asset under management objective? The aim remains to reach $20,000 million in assets under management, with steady progress toward that goal. This latest phase concludes on March 31. Source: Lare Publica (Citation: Lare Publica)