Agenda item

A report of the Chief Grants Officer (copy attached).

The Board considered a report of the Chief Grants Officer on high risk, high impact investments. The Chief Grants Officer indicated that he would welcome feedback from the Board on the principle of financing early stage social enterprise activity in principle before the Board went on to consider setting aside a small percentage of the investment fund to high impact investments.

Members were concerned about calling the investments ‘High Risk’ as this was clearly in contravention to their fiduciary duties as Trustees. Whilst agreeing with the general principle of a high impact element being attractive, members were not yet convinced that the proposals as drafted worked. Accordingly Officers were asked to reconsider how such a proposal might work and to establish whether it was possible to draw such a fund form another source that might not have such high level fiduciary obligations.

RESOLVED, that:

·         The contents of the report be noted;

·         The social investment fund would be used to make investments with a high social impact, whilst acknowledging such investments may entail higher risk than the City of London is accustomed to. Such investments would be made in light of the fact that the social investment market is in its early stages and in need of encouragement and support, and that each investment would be considered on a case-by-case basis.

·         Officers to prepare a paper identifying possible sources of funds, detailed disbursement and investment criteria for a £250,000 - £500,000 fund targeting high impact social investments for the next meeting of the Board in December 2013.

·         Officers to reconsider how such proposed investments might work and to establish whether it was possible to draw such a fund form another source that might not have such high level fiduciary obligations.