Maximising Social Impact within Family Offices
12th June 2020 12:00pm Singapore Time
- This session highlighted that many see conventional investing and social impact on different poles but in fact asset owners should consider aligning their full portfolio with their values, leveraging various asset classes to achieve different goals. On one side of this spectrum there is conventional public securities using ESG-integration, then there are impact funds that can offer deeper impact with still competitive risk-adjusted returns, and on the other end of the spectrum there is concessionary capital for social enterprises or more impact-first funds and finally philanthropy which of course would focus only on impact returns with no financial return expected.
- Panelists discussed tips for family offices starting out in impact investing which included setting clear goals and expectations and identifying where to invest based on where the principles have expertise and can contribute beyond financial capital. The advice was to start small but eventually build out a portfolio of investees and to engage partners and learn from friends. The session also discussed looking at one’s own business operations to make these sustainable too, not just demand this of investees.
- With responsible investing, the investment evaluation criteria are largely the same as with conventional investing. Looking for a passion, credibility and grit of the enterprise’s management team tops the list and assessment of the financials with corresponding due diligence remains critical as well.