• Summary

    The article discusses LeapFrog Investments' work in microinsurance.

    "Of the 8.7m clients Leapfrog's portfolio companies currently reach, 6.5m would fall into categories traditionally underserved by financial services."

    Read original article

  • Summary

    The article describes the U.S. Treasury's new guidance for program-related investments that allow foundations to advance their purposes and serve the public through investment in innovative, for-profit enterprise.

    "Investments must meet two main criteria to qualify as a PRI according to existing Treasury rules. First, the primary purpose must be to carry out the foundation's charitable purpose. This means that foundations must monitor their investment targets - much as they would a recipient of a grant - to ensure that the company remains focused on research and development that is relevant to the charity's mission. Second, 'no significant purpose' of the investment may be to generate income or capital appreciation. In practice, this generally means that the investment must be on terms that would not be attractive to an investor purely motivated by profit."

    Read original article

  • Summary

    The Atlantic surveys the landscape, opportunities, and challenges in impact investing.

    "In the broadest view, impact investors are simply betting on fundamental trends. In a volatile and resource-constrained world, investments to provide food, water, energy, health care, education and sanitation to a growing and increasingly affluent global population arguably have lower risks and higher long-term returns. But on the ground, even innovative efforts to meet basic needs often are hampered by inefficiencies and market failures that prevent those who create value from getting paid for it.

    Enter the financial innovators."

    Read original article

  • Summary

    Billionaires who have signed the Giving Pledge have expressed interest in impact investing.

    "The hottest topic, says Mr Case, was 'impact investing,' a phrase describing how to invest money to make profits and do good at the same time. Although Mr Buffett is sceptical about the idea, many of the other attendees were so gripped that they plan to convene a follow-up discussion on it."

    Read original article

  • Summary

    The article discusses the momentum of impact investing, as well as the hurdles that hinder it from increasing scale.

    "What is needed before this emerging alternative-asset class can attract mainstream investors, argue its proponents, is a new ecosystem of legislation, tax laws, ratings providers, analysts and intermediaries."

    Read original article

  • Summary

    Michael Schlein, Accion's President and CEO, and Diana Taylor, its Chairman of the Board, discuss Accion's approach to impact investing.

    "What's required on the financial front is patient investing, focused on businesses that are earlier in their development cycle than those normally considered 'investable.' This capital must be risk-tolerant, provided in combination with technical and strategic expertise, as well as access to potential partners and, when appropriate, later-stage investors."

    Read original article

  • Summary

    The author, from App-X, explains the differences between IRIS, GIIRS, and PULSE.

    "Before exploring their differences, it's helpful to recognize that PULSE, GIIRS and IRIS have a shared goal: To increase the flow of capital to investments that solve social and environmental problems while generating a financial return. Each solution, however, plays a unique role."

    Read original article

  • Summary

    Omidyar Network invests in social impact bonds.

    "Social impact bonds are meant to pay for projects that 'reduce the need for expensive emergency-response and safety-net services,' said Redwood City’s Omidyar Network."

    Read original article

  • Summary

    Morgan Stanley Smith Barney is launching a platform for its financial advisors to offer clients investments with positive social and environmental impact in what appears to be a major push to offer sustainable investing to mainstream investors.

    "MSSB said the platform will offer public and private market products to clients through their financial advisors and is the first phase of the firm's plan to meet investors' desires for investment opportunities with positive social and environmental impact without sacrificing investment performance."

    Read original article

  • Summary

    The U.S. State Department held the forum to increase collaboration among civil society, investors, businesses, entrepreneurs, and governments.

    "We have an opportunity with the convergence of the recognition on the part of government, the private sector, civil society, that we can be so much more effective working together than working at cross-purposes."

    Read original article

  • Summary

    Alexander Friedman, CIO at UBS, and Patty Stonesifer, former CEO of the Gates Foundation, write in the Financial Times that finance can fund a revolution in giving.

    "Over the past 50 years, the financial industry has built a huge infrastructure to manage investments and along the way has been roundly criticised for seemingly subjugating the welfare of society to short-term profits. It now has an opportunity to change the debate by opening the capital markets to the social sector in a manner that is good for investors and great for the world."

    Read original article