Agenda item

Report of the Chief Grants Officer.

[In advance of the discussion about appointment of two additional Fund advisors, Edward Lord withdrew from the meeting.]

The Board considered a report of the Chief Grants Officer relative to progress in respect of investment opportunities, the possibility of ring-fencing part of the Social Investment Fund for a high-risk allocation and the appointment of Fund advisors. 

In respect of future investment in housing bonds, Members were advised that Officers had, at the Board’s request, now investigated the opportunities to invest in housing association bonds.  The Principal Grants Officer explained that whilst such investment opportunities had initially been promoted, existing housing association bonds were not now deemed to be suitable given the investment criteria, the difficulty in relating such investments to specific social impact and the generally long maturity on these products.

In-line with the Board’s decision of 14^th December 2012 to appoint a “pool” of social investment advisors with a range of experience and views, the Principal Grants Officer explained that following a comprehensive selection process the FSE Group and the Social Investment Business Group/Investing for Good/ The Good Analyst were recommended for approval as additional Fund advisors. 

At the Board’s request it was agreed that Officers should provide clarification to the newly appointed advisors about those areas that should be addressed.

RESOLVED – That:-

(i) the contents of the report be noted;

(ii) Officers be authorised to bring indirect investments to the Social Investment Board for consideration at future meetings;

(iii) there be no consideration given to investment in existing housing association bonds;

(iv) the FSE Group and Social Investment Business/Investing for Good be appointed as advisors to the Fund on the same arrangement as the current advisor, Social Finance; and

(v) Officers prepare a report on options for a high-risk allocation for the Board’s September meeting.