New blueprint for social investors

New blueprint for social investors

News (UK)

A practical guide for investors looking to enter the social impact investment market has been published by Investing for Good this month.

The Good Investor is structured around incorporating impact assessment into the various stages of the investment process, progressing from the investors initial exposure to investment opportunities, through the screening and analysis, and onto making investment decisions, monitoring and evaluating, and reporting on the impact achieved.

Geoff Burnand, chief executive of Investing for Good, said: "The Good Investor will be useful for foundations, ethical funds and social venture funds who need to follow due process and perhaps need help in weighing up the varied forms of social investment out there and show accountability for investment decisions."

Burnand said it would also enable IFAs to provide better advice to clients who are interested in this area.

While a considerable history of financial investing has established the key financial measures and accounting methods as well as a panoply of analytical tools, for the social impact investor detailed measurement is comparatively much younger. Impact investors may therefore find themselves equipped with well-developed financial procedures, but less by way of concrete structure on the impact side.

The Good Investor addresses this gap and is part of a collaborative initiative on a social impact framework that builds common ground in the social investment sector on impact strategies, including impact reporting and monitoring. The includes SROI Network and NPC and was commissioned by Big Society Capital in partnership with Deutsche Bank.

Burnand said: "The Good Investor offers investors three key advantages, better impact investment and fund management, better relationships with social purpose organisations working on the front line, and better communication with commissioners and business partners."

Investing for Good launched a new affiliate company, The Good Analyst Ltd.in 2013 to provide independent impact ratings and reports for their social bonds, as well as consultancy and advice services in the areas of impact measurement, analysis, reporting and investment strategy. 

  • Social investment
  • Strategy advice
  • Trusts & foundations
  • UK