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THE J.W. MCCONNELL FAMILY FOUNDATION
Beth Hunter
Sr. Program Officer
Social finance, impact investing and
foundations
From ‘Social Return on Investment’ and
‘Responsible Investment’
• Negative screening proactive triple bottom line
• Environmental, Social, Governance (ESG) standards
• Innovation in financial markets
To Impact Investing
• Investments that create positive social, environmental
and economic impact, while generating financial return
Foundations
• Program related investments (PRI) & Mission related
investments (MRI)
Social Finance: a range of financial instruments seeking to achieve social
and environmental as well as financial returns
Foundations
Foundations
Value of reported impact investments
Current state of the market - supply
Source: Everett and xx, 2011
Current state of the market - demand
• Impact measurement and
metrics
• Intermediaries
• Financial innovation & financial
products
• Regulation
• Sector reputation
• Liquidity & exit strategies
Current Barriers
Market Development Barriers
1. Building the Marketplace 3. Sector Capacity Building2. Impact Investments
MRI/PRI
o Target of 10%
o Intermediaries
Social Innovation
Fund
Social Finance at McConnell
Social Finance as a tool
3.5% 2.1%
94.25%How is our
Foundation
Capital allocated?
Social Finance at the Foundation
Impact Investments:

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Beth Hunter

  • 1. THE J.W. MCCONNELL FAMILY FOUNDATION Beth Hunter Sr. Program Officer Social finance, impact investing and foundations
  • 2. From ‘Social Return on Investment’ and ‘Responsible Investment’ • Negative screening proactive triple bottom line • Environmental, Social, Governance (ESG) standards • Innovation in financial markets To Impact Investing • Investments that create positive social, environmental and economic impact, while generating financial return Foundations • Program related investments (PRI) & Mission related investments (MRI) Social Finance: a range of financial instruments seeking to achieve social and environmental as well as financial returns
  • 4. Value of reported impact investments
  • 5. Current state of the market - supply Source: Everett and xx, 2011
  • 6. Current state of the market - demand
  • 7. • Impact measurement and metrics • Intermediaries • Financial innovation & financial products • Regulation • Sector reputation • Liquidity & exit strategies Current Barriers Market Development Barriers
  • 8. 1. Building the Marketplace 3. Sector Capacity Building2. Impact Investments MRI/PRI o Target of 10% o Intermediaries Social Innovation Fund Social Finance at McConnell
  • 9. Social Finance as a tool 3.5% 2.1% 94.25%How is our Foundation Capital allocated?
  • 10. Social Finance at the Foundation Impact Investments:

Notas do Editor

  1. Innovation in financialmarkets – new ways to invest ex. fundswith patient capital Impact investing – about the intentionality. Also, whatis new isthatFdns are becominginvolved.
  2. Examples of intermediaries are investment funds, like Investeco.
  3. This is global ***
  4. Everett 2011Purely commercial vs charities (social enterprise in the middle)Popular (highsupply) space = clean tech, real estate
  5. -clearway to measure, assess as part of return, esp if lower return-Financial innovation: people have a range ofconventionalinvestmentproducts (mutualfunds, on-line, banks…), not so impact investment-regulations: charities vs businesses; Foundations: PRIscannot count as charitable expenseagainstdisbursement quota if theyfail – it’s a loss (Canada vs. US) – sorisk-adverse & smfdnsunwilling.à-liquidity: rapid exit needed to unlock capital (pension fundsetc)