Enabling progress of our sector
Welcome to IIA’s quarterly newsletter for September.
In this edition, we share key takeaways from an event we co-hosted with a global impact investing strategist. This was the first of several thought leadership events we’ll be delivering over coming months.
We’re counting down to the annual GSG Global Impact Summit in Spain in a few weeks’ time, and will keep you posted on the insights.
IIA is proud to have played a role in the recent success of a former Growth Grant recipient that is assisting people who are struggling as a result of the housing crisis.
And for those keen to learn more about the world of impact investing – from social enterprises to financial advisers and planners – there’s a range of educational webinars to explore.
You can read more on these topics and other updates below.
David Hetherington, CEO
Impact Investing Australia
IIA event with global impact investing strategist
Earlier in September, we were delighted to co-host a special event for social impact leaders with guest speaker Tom Hall, UBS Global Head of Social Impact & Philanthropy, who shared the latest developments and trends in impact globally.
London-based Tom was in Sydney for the event, co-hosted with UBS Optimus Foundation and Social Ventures Australia, and chaired by our CEO, David Hetherington. Given the audience, Tom declared: “We are all impact chasers” with a shared goal to advance to an impact economy.
The importance of institutional capital working alongside philanthropic capital, with a focus on risk-adjusted market returns, was a key takeaway. Interestingly, Forbes projects philanthropic capital globally will grow from US$2 trillion in funds under management to US$10 trillion by the mid-2030s, and Tom presented a range of innovative case examples of how philanthropic and institutional capital can work hand-in-hand in blended finance arrangements.
In today’s market, Tom said data capture is key to generating impact investing strategies that are credible, viable and can effectively demonstrate positive outcomes. He emphasised the need for impact transparency – disclosing and communicating information to assess the effectiveness of investments in achieving their desired impact goals – from measurement and reporting, to product standardisation and assurance processes.
Lastly, Tom raised the possibility of a standardised impact bond rating that would provide investors with information about the potential or realised positive impact of their investments in addition to traditional financial risk assessments.
IIA looks forward to hosting more thought leadership events to foster the growth of impact investing here and in our region.
IIA Chair, Richard Brandweiner (left) and IIA CEO, David Hetherington (right) with UBS Global Head of Social Impact & Philanthropy, Tom Hall.
Global impact investment event of 2023
There’s just a few weeks until the Global Steering Group’s Global Impact Summit in Malaga, Spain – the premier global event of the impact movement, which is bringing together 1000+ practitioners and leaders from the worlds of finance, business, policy-making and civil society from around the world.
Addressing three themes, this year’s Summit will celebrate achievements and identify strategies and actions designed to deliver positive impact at scale in the future:
- Mobilising capital for people and planet, where it is most needed
- Achieving full transparency in measuring impacts
- Building impact economies
Our Founding Chair and GSG Global Ambassador, Rosemary Addis AM, will participate in a panel on Day 1 discussing: The future of the Impact and Social Economy: lessons from markets across the world.
Stay tuned to our social media channels for Summit insights.
IIA Growth Grant recipient helping address the nation’s housing crisis
Congratulations to IIA Growth Grant recipient Head Start Homes on winning a $5 million tender to address the critical need for affordable housing in the Wollongong area. The organisation’s Equity+ solution will provide:
- an affordable rent-to-buy home ownership pathway that offers affordable rental housing that people can apply to purchase; and
- financial guidance and support services to increase financial capability through savings education plans.
IIA is pleased to have played a role in enabling the project. In announcing the contract win, Head Start Homes Founder and Managing Director, Stephen Woodlands:
“Special thanks to Impact Investing Australia and the Department of Social Services for providing the seed grant funding for developing the Equity+ innovation.”
Impact investing sessions
Impact investing workshop: Catalytic Capital
Impact Investing Hub and Philanthropy Australia are presenting a webinar series for social enterprises, not-for-profits, foundations, institutional and impact investors and professional advisors. Their next event ‘Catalytic Capital’ will be held at 12 noon on Friday 22 September. Attendees will have the opportunity to:
- learn about blended finance and how catalytic capital can bring together investors with a shared vision for impact;
- understand the catalytic role foundations can play in funding and the changing shape of philanthropy in Australia as more foundations explore impact investing; and
- hear a range of perspectives from impact investing experts, including Jessica Mendoza-Roth (Social Impact Hub), Adam Milgrom (Tripple), Skye Heller (Minderoo) and Tamara Pararajasingham (Uniting).
CPD accredited webinar for financial advisers and planners
A webinar on 19 October will provide financial advisers and planners with an overview of impact investing in Australia. Hosted by Impact Investing Hub, the webinar will provide an overview of the impact investing landscape (including how impact investing differs from other forms of investing), perspectives on the legal landscape relevant to planners and advisers, and considerations for advising clients on impact investment opportunities.
The webinar has been accredited for continuing professional development by the Financial Advice Association of Australia (but does not constitute FAAA’s endorsement of the activity).
Help celebrate sector leaders and innovators
Nominations are now open for the 2023 Australian Impact Investment Awards. The Awards showcase and recognise organisations and individuals for their expertise, commitment and outstanding activity in the Australian impact investing ecosystem. Awards are offered in five categories:
- Impact asset owner of the year
- Impact asset manager of the year
- Impact market builder of the year
- Impact enterprise of the year
- Individual outstanding achievement award
Presented by Impact Investing Hub, this year’s Awards ceremony will be held on 30 November 2023 (at an in-person event in Sydney and online).
We encourage you to nominate a person or enterprise that should be recognised. Read more here
Child-lens investment fund, with an impact-first strategy
Save the Children has launched its second impact investment fund; three years since its initial fund, which was Australia’s first impact investment fund by an aid organisation.
Fund I, which served as a proof of concept, successfully raised $7.5 million during the height of the COVID-19 pandemic. The organisation’s second endeavour expects to secure $25 million in investments this year, generating impact and financial returns.
Fund II aims to create deep social impact alongside income and capital returns from investing in social enterprises that are working to improve the lives of vulnerable children and their families. These enterprises will be impact-first, technology-enabled, solutions-driven, innovative and have a business model that can scale.
Through Save the Children’s strong connections with communities, governments and investment partners in Australia, Asia and the Pacific, it is expected this Fund will help drive practical solutions to local problems, and make a greater positive difference for children in need. Read more here