A bounteous package of news today as we catch up with a few day’s of exciting information flow from the UK where PM David Cameron has been a tad hyperactive in getting social investing programmes going. The SIB and DIB sectors feature highly – happy reading!
Social Stock Exchange launches
resource.uk.com
Prime Minister David Cameron yesterday (6 June) launched a new initiative aimed at connecting the public financial markets with publicly-listed businesses with ‘strong social and environmental purpose’.
Supported by a number of organisations including the London Stock Exchange Group, City of London Corporation, Big Society Capital and the Rockefeller Foundation, the Social Stock Exchange (SSE) hopes to place the UK at the ‘centre of the multi-billion dollar global social impact market’ by connecting publicly-listed social impact businesses with investors seeking to generate ‘positive impact’ alongside a financial return.
UK – Two social impact bonds launched to fund schemes that help children
Third Sector
Two new social impact bonds have been launched with support from the Cabinet Office’s Social Outcomes Fund, which co-funds SIBs alongside other public sector contractors.
George Soros on Strategy for Social Impact Bonds
Bloomberg
Billionaire investor George Soros speaks at the U.K.’s Social Impact Investment Forum at Bloomberg’s European headquarters in London about investing in social impact bonds.
Soros Sounds Note of Caution on Social Impact Bonds
Bloomberg
Billionaire Investor George Soros talks about social impact bonds at a conference at Bloomberg’s European headquarters in London.
Intransience Or In Transition?
fa-mag.com
Impact investing can be broadly defined as investing which has the intention to generate a positive and measurable social and environmental impact along with a financial return. By definition it is attempting to “kill two birds with one stone.” In the real world, we know this is an unlikely event – almost a freakish occurrence.
The global asset management industry is responsible for approximately $120 trillion to $130 trillion of investments across the world. In contrast it is estimated that just $50 billion to $100 billion of assets are allocated to impact investing – representing just 0.05 percent of total investments.
UK – Five Takeaways: The G8 and Social Impact Investing
Huffington Post
The UK government planted the Union Jack squarely at the center of social impact investing at the dedicated G8 meeting June 6 – hosted by Prime Minister David Cameron in concert with Cabinet visionary Nick Hurd, Minister for Civil Society, and Sir Ronald Cohen, who in the space of eight hours was anointed the grandfather, godfather, and architect of social finance.
The fluency of UK policymakers on the societal implications and substance of impact investing was simply breathtaking across all areas and levels of government. The picture of a cohesive and fast-growing social finance field in the UK, anchored in energetic public/private partnership, was a profound lesson on the benefits of pursuing a clear and consistent vision over almost 15 years, through unerring, post-partisan leadership.
USA – Colorado and Denver receive grants to study social impact bonds
Denver Post
Colorado and Denver were selected as one of six state and local governments to receive aid in developing “social impact bond” projects, according to a release Monday from the offices of Governor John Hickenlooper and Mayor Michael Hancock.
The bond projects, also known as pay-for-success contracts, partner governments with service providers and private sector investors to fund social programs that, in theory, save the state money.
UK – Experts unveil plans for ‘Development Impact Bonds
Pioneers Post
Proposals for implementing a new social investment vehicle that will offer the benefits of Social Impact Bonds to developing countries are being unveiled in London today.
On the eve of London’s Social Impact Investment summit, an international group of experts is proposing how it will implement the ‘Development Impact Bond’ – or ‘DIB’.
The new financing instrument could bring together investors, governments, the private sector and civil society to provide public services in developing countries.
UK – H2O Contributes to New Study on Development Impact Bonds
H2O Ventures Partners
Findings of the groundbreaking work undertaken by H2O in collaboration with Social Finance on the potential of a development impact bond (DIB) for the control of sleeping sickness in Uganda was presented at a public consultation held in London on 5 June 2013.
The consultation draft report was compiled by a Working Group convened by the Center for Global Development and Social Finance to explore the utility of DIBs as a new financing instrument to deliver societal impact in developing countries. The Working Group was made up of members drawn from development finance institutions (DFID and USAID), governments (including UK, USA and Sweden), philanthropic foundations (including Rockefeller Foundation, Omidyar Network and Bill & Melinda Gates Foundation) and international impact investment institutions (including World Bank and OPIC).
Australia – Pinning benefit bonds down
SVA Consulting Quarterly
The introduction of Australia’s first social benefit bond has brought the spotlight onto this innovative funding mechanism which allows investors to blend business with social change.