Toronto’s 1st Impact Investment FairFeaturingMeet & Greet with@
Defining Impact InvestmentsImpact investments are investments intended tocreate positive impact beyond financial return.Blen...
Modern Portfolio Theory-Assumes that financial returns come with risk-Higher risks demand higher returns-Some investments a...
Modern Portfolio Theory-Systemic risk is any risk that affects the entirefinancial system (ie. the crash)-Since most impact...
Asset MixRule of Thumb:your age = the % of bonds in your portfolioBonds = 40%Can. Stocks = 20%US Stocks = 20%Global Stocks...
Bonds = 30%Can. Stocks = 20%US Stocks = 20%Global Stocks = 20%10%20%20% 20%30%Impact Bonds = 10%Asset MixImpact investment...
Suitability-Always consider impact investments within thecontext of your entire investment portfolio-Don’t have more than ...
Accredited Investor?-Owns financial assets of more than $1M(net of liabilities)-Net income of more than $200K each of thepa...
Renewable Energy Co-ops-Equitable legal structure-Investors must be members of the co-op-Equal voting rights (one member o...
Co-op Bonds - Risks-Transparency risk: Low-Default rate: UNKNOWN-Liquidity risk: HIGH-Duration risk: ModerateTimothy Nash ...
MicroFinance-Tiny loans to businesses in emerging economies-Replaces the need to use loan sharks-Loans are repaid over tim...
MicroFinance - Risks-Transparency risk: HIGH-Default risk: Low-Liquidity risk: HIGH-Duration risk: ModerateTimothy Nash @t...
Social Enterprise MicroLoans-Small loans to social entrepreneurs ($1k - $25k)-Creates meaningful employment and strongerlo...
Social Enterprise MicroLoans - Risks-Transparency risk: Depends on reporting-Default rate: Depends on company’s stage-Liqu...
RRSP, TFSA-Currently, most impact investments are notRRSP or TFSA eligible-Some impact investments have been includedin RR...
Questions to Ask-What is the minimum investment?-What is the duration of the investment?Timothy Nash @timenash nash@sustai...
Next Steps-Connect with the organization and request aninvestor package-After doing your homework and speaking withan expe...
THANK YOUSustainableEconomist.com
socialinnovation.ca
optionsforgreenenergy.ca
solarbonds.ca
greenlifecommunity.ca
zooshare.ca
oikocredit.org
kulemelainvestments.com
accessccf.com
alterna.ca
riseassetdevelopment.com
youthsocialinnovation.org
trilliumhousing.ca
purposecap.com
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Impact investment fair

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Slides for Toronto's First Impact Investment Fair May 30, 2013 at the Centre for Social Innovation - Regent Park.

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Impact investment fair

  1. 1. Toronto’s 1st Impact Investment FairFeaturingMeet & Greet with@
  2. 2. Defining Impact InvestmentsImpact investments are investments intended tocreate positive impact beyond financial return.Blended Return = Financial + Social ReturnsFinancialSocialBlended0%2%4%6%8%ROI
  3. 3. Modern Portfolio Theory-Assumes that financial returns come with risk-Higher risks demand higher returns-Some investments are negatively correlated(ie. when stocks go down, bonds go up)-Diversification is a good thingTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  4. 4. Modern Portfolio Theory-Systemic risk is any risk that affects the entirefinancial system (ie. the crash)-Since most impact investments are not tradedin the traditional system, they aren’t subject tothe same level of systemic risk-Investors can strengthen their portfolios withimpact investments (diversification)Timothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  5. 5. Asset MixRule of Thumb:your age = the % of bonds in your portfolioBonds = 40%Can. Stocks = 20%US Stocks = 20%Global Stocks = 20%20%20%20%40%
  6. 6. Bonds = 30%Can. Stocks = 20%US Stocks = 20%Global Stocks = 20%10%20%20% 20%30%Impact Bonds = 10%Asset MixImpact investments can make aportfolio more diversified
  7. 7. Suitability-Always consider impact investments within thecontext of your entire investment portfolio-Don’t have more than 15% of assets in anyone investment-Make sure you won’t need the money beforematurity, and are comfortable with the risksTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  8. 8. Accredited Investor?-Owns financial assets of more than $1M(net of liabilities)-Net income of more than $200K each of thepast 2 years* Only applies to a small handful of impactfunds in the room
  9. 9. Renewable Energy Co-ops-Equitable legal structure-Investors must be members of the co-op-Equal voting rights (one member one vote)-Benefit from Ontario’s feed-in tariff forrenewable energyTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  10. 10. Co-op Bonds - Risks-Transparency risk: Low-Default rate: UNKNOWN-Liquidity risk: HIGH-Duration risk: ModerateTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  11. 11. MicroFinance-Tiny loans to businesses in emerging economies-Replaces the need to use loan sharks-Loans are repaid over time incl. interest, allowingfor reinvestment (recyclable philanthropy)-Creates employment and stronger localeconomies (internationally)-Relative strength of the Canadian dollarmultiplies the impact
  12. 12. MicroFinance - Risks-Transparency risk: HIGH-Default risk: Low-Liquidity risk: HIGH-Duration risk: ModerateTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  13. 13. Social Enterprise MicroLoans-Small loans to social entrepreneurs ($1k - $25k)-Creates meaningful employment and strongerlocal economies (in your backyard)-Can be used to finance startup or expansionTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  14. 14. Social Enterprise MicroLoans - Risks-Transparency risk: Depends on reporting-Default rate: Depends on company’s stage-Liquidity risk: HIGH-Duration risk: ModerateTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  15. 15. RRSP, TFSA-Currently, most impact investments are notRRSP or TFSA eligible-Some impact investments have been includedin RRSP accounts, but the future is murky-It’s best to assume non-eligibility, and tosubtract taxes from your expected returnTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  16. 16. Questions to Ask-What is the minimum investment?-What is the duration of the investment?Timothy Nash @timenash nash@sustainableeconomist.com May 30, 2013-What is the expected financial return?-Is there 3rd party verification?-Is the investment backed by an asset?-What is the expected social impact?
  17. 17. Next Steps-Connect with the organization and request aninvestor package-After doing your homework and speaking withan expert, fill out the forms and write a cheque-Sleep well, knowing that you’re making moneyand a differenceTimothy Nash @timenash nash@sustainableeconomist.com May 30, 2013
  18. 18. THANK YOUSustainableEconomist.com
  19. 19. socialinnovation.ca
  20. 20. optionsforgreenenergy.ca
  21. 21. solarbonds.ca
  22. 22. greenlifecommunity.ca
  23. 23. zooshare.ca
  24. 24. oikocredit.org
  25. 25. kulemelainvestments.com
  26. 26. accessccf.com
  27. 27. alterna.ca
  28. 28. riseassetdevelopment.com
  29. 29. youthsocialinnovation.org
  30. 30. trilliumhousing.ca
  31. 31. purposecap.com

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