Understanding the risk return spectrum of impact investment opportunities is extremely important. While, there is much recent focus on “market-based” returns, we cannot lose sight that there must also be room for the deeply intentional investments that are not profit maximizing. Investable Solutions will provide clarity between investment opportunities that are and are not concessionary. 

Over the next few months, each working group will refine the scope of the project and announce the project's initial deliverables at SOCAP17 in San Francisco. Throughout the project, we will post updates, notes, and reports from each working group to give interested parties insight on how the project is progressing. Accordingly, some of the notes posted will not be fully fledged out ideas, concepts, or recommendations, but rather broad discussion points. 


Launch Event Discussion Leaders

Craig Pfeiffer, President and CEO, Money Management Institute

Craig Pfeiffer, President and CEO, Money Management Institute

Joan Trant, Managing Partner, TriLinc Globa

Joan Trant, Managing Partner, TriLinc Globa

Ron Cordes, Co-Founder, Cordes Foundation

Ron Cordes, Co-Founder, Cordes Foundation

Hilary Irby, Managing Director, Head of Investing with Impact, Morgan Stanley

Hilary Irby, Managing Director, Head of Investing with Impact, Morgan Stanley

Tim Freundlich, President, Impact Assets Inc.

Tim Freundlich, President, Impact Assets Inc.

Dr. Stephen R. Freedman, Head of Thematic and Sustainable Investing Strategy, UBS

Dr. Stephen R. Freedman, Head of Thematic and Sustainable Investing Strategy, UBS

 

Notes: 6.19.17 - GCP Launch Event

Below are the key notes from the first Efficient Product Design working session of the Good Capital Project.

Major themes

  • What is the paradigm shift needed to move capital in this direction? What is holding back capital - is it insufficient supply of investable products or insufficient demand from consumers?

  • Average financial advisor maybe interested to learn more, but few are deploying capital and initiating conversations with clients.

  • Financial advisors don’t seem to be reflecting interests of clients. Average adviser is a 62- year-old white man.

  • Impact investing industry could learn a lot from Viagra. Pfizer went to the patients and said, “You should talk to your doctor about this.” We don’t have institutional players in this space who can do this marketing.

  • We need to go to clients to trigger a demand for impact, and ESG products. We need to activate millennials, female investors, and baby boomers with a purpose. Critical need to educate end users.

  • We have to identify investor cohorts to gain insights into their consumption patterns - how do they buy? Who is facilitating sales? Through which channels are they buying? Once we have these answers, we can then design our distribution to penetrate that circle.

  • We need to spend more time on identifying the correct channels and then trying to overcome compliance hurdles.

  • CEOs made bold commitments at Davos. Now it is time to deliver on those promises.

  • Cusp of massive wealth transfer which can transform businesses for better or worse. People at the receiving end of wealth transfer care a lot more about social impact than existing clients.

Key Questions

  1. How can we get impact investments to be bought, not sold?

  2. How do we incentivize and create urgency for intermediaries to really accelerate the flow of capital?

  3. What kind of middleware is needed? Is there a need to solves the challenges of scaling? How do we start to think of mapping, aligning interests, unifying, and creating industry utilities?