Download - Unleash the 95% copy
© 2015 Boardwalk Capital Management
Unleash the 95%Competitive Performance with Social impact
June 2015
2© 2015 Boardwalk Capital Management.
While each foundation has a unique mission, every foundation has a purpose to serve the “greater good”.
Stephen Viederman, President (Ret.)
Jessie Smith Noyes Foundation
3© 2015 Boardwalk Capital Management.
Each individual, celebrity or family office has the same opportunity as a foundation:
Creating a unique social brand.
4© 2015 Boardwalk Capital Management.
“If you could invest with a better footprint, and earn the same returns, why wouldn’t you?”
Scott Sadler, Founder
Boardwalk Capital Management
5© 2015 Boardwalk Capital Management.
The Typical Foundation
95%
5%
Retained Investments
Targeted Grants
Unleash the 95% to do some good.
6© 2015 Boardwalk Capital Management.
When bonds yielded 10% and stocks 3%... Distributing 5% was easy.
Foundations had to rethink how to meet their distribution requirements.
Now they are rethinking the definition of “impact” as more than grantmaking.
Today’s Conundrum
7© 2015 Boardwalk Capital Management.
Today’s investors are demanding something different:
Competitive Returns with Positive Social Impact
Impact Investing is now one of the industry’s fastest growing segments
Returns are competitive with conventional investing styles
Social Impact is significant and measurable
In the United States today, $2 out of $10
under professional management
employs a sustainable investment process.
Impact investing is a fast-growing segment
8© 2015 Boardwalk Capital Management.
Investing for Return and Impact
We need to earn returns to meet our future liabilities
Charitable grants Operating expenses Retirement Education Lasting legacy
The World needs help with a variety of challenges
Clean Water Poverty Energy
Climate Change Agriculture Access to finance
Product safety Workers rights Animal welfare
Education Housing Health
New investment risks must be mitigated
Water Scarcity Climate risk Emissions regulation
Consumer attitudes Social media Ethics and corruption
Investing for Impact brings these elements together. Foundations are uniquely positioned to utilize these philosophies.
9© 2015 Boardwalk Capital Management.
Most asset types can be Impact assets
Fixed Income
Quality of life bonds
Sustainable corporate and “green” project bonds
Community lending, housing finance, microfinance
Hospital, greenspace, school, water munis
Private equity
“Impact” investments
Clean technology and renewable energy
Real estate: Brownfield remediation, organic farmland
Base-of-the-pyramid social impact equity
Large Cap Equity
Global Sustainability
Leaders
Smaller carbon footprint and declining emissions
Worker-friendly employment practices
Greater philanthropic activity
Superior transparency and governance
Large Cap Equity
Global Sustainability
Leaders
Large Cap Equity
Global Sustainability
Leaders
Becomes
Social impact is achieved when:
Becomes
Becomes
10© 2015 Boardwalk Capital Management.
Theme: Sustainability Leaders
Global Sustainability Leaders Equity• Leaders in environmental stewardship, policies
and controls
• Best corporate citizens
• Transparency and high ethical standards
• Best places to work
• Diversity and gender equity in management and on boards
11© 2015 Boardwalk Capital Management.
Theme: Agriculture
Farmland LP
• Strategic land purchases within driving distance of urban farmers markets
• Convert conventional farmland to organic over three year period
• Rent acreage to successful farmers
• Shortage of organic farmland vs. demand
• Rising profitability per acre from conventional to “grass fed” to organic
• Successful record for investors, farmers and consumers
12© 2015 Boardwalk Capital Management.
Theme: Access to Finance
BlueOrchard Microfinance Fund:
• Invests in debt instruments issued by microfinance institutions located in Africa, Asia, Eastern Europe and Latin America.
• Maximum maturity of three years
“Offer access to financial services to low-income groups often unserved by mainstream banks, thus enabling them to develop and grow income-generating activities.”
13© 2015 Boardwalk Capital Management.
Theme: Renewable Energy
CEA Utility Income Fund IV:
• Solar PV farms constructed with investor money
• Low correlation with other investment types
• Long term Power Purchase Agreements with major utility companies
• Energy price for fixed decades
• Renewable energy credits 30%
• 11% IRR (unleveraged)
• Insured by major insurers (Chubb, Travelers)
• Possible leverage (BB&T)
14© 2015 Boardwalk Capital Management.
Thank you
Unleash the 95%
© 2015 Boardwalk Capital Management
Boardwalk Capital Management is an active member of the Green Chamber of the South.
Follow us on:
Boardwalk Capital Management is a Certified B Corporation.
