Agenda item

Presentation of Michele Giddens

The Board received a presentation on the UK National Advisory Board for

Impact Investing from Michele Giddens, Chair of the UK National Advisory

Board to the Global Social Impact Investment Steering Group. Michele Giddens

gave the Board an overview of her background in social investment and her

current work with the UK National Advisory Board, Bridges Fund Management

and the CDC Group.

The UK National Advisory Board was the UK arm of the Global Steering Group,

established by the G8 and now comprising 17 member countries. The UK

National Advisory Board supported the Global Steering Group in encouraging

impact investment globally, and looked to maintain the UK’s leading role in

impact investing. The Board received a slide illustrating the spectrum of impact

investing which had emerged in recent years, demonstrating the intentions and

goals of organisations in the impact economy. The UK National Advisory Board

had produced five summary recommendations to move towards an inclusive

and sustainable economy; adopt an inclusive and sustainable agenda,

empower savers to invest in line with their values, put purpose at the heart of

public procurement, accelerate the rise of purposeful business, and strengthen

the UK’s role in international development finance.

Bridges Fund Management had been set up in 2002 to raise funds with explicit

social and environmental purposes, and to date had raised almost £1 billion.

Investment was made according to four impact themes; health and wellbeing,

education and skills, sustainable living, and underserved markets. The firm

employs three strategies, each of which had its own fund vehicle. These are:

investing in growth businesses to help them execute on their growth for

maximum impact; property; and social sector funds. The firm also had an

advisory arm, and a charitable foundation. Example investments include

World of Books, which buys books from charity shops in large quantities and

sells them online or recycles them. The firm also invests in low-cost housing

by working with local authorities and developers to try and build more social

and affordable housing. A family of funds helps Bridges to navigate the difficult line between risk-adjusted return and impact, and provides the tools to respond to challenges and tackle a wide range of issues.

Members asked Michele Giddens questions about her experiences in impact

investing, such as areas she thought had been particularly successful or

unsuccessful. Michele Giddens felt extra care had to be taken with market rate

funds not to trade off the growth of the business or the value of property with

the impact of the investment. She also felt Social Impact Bonds could work very

well where there were immediate savings, and whilst they had been less

volatile than first thought, they required a considerable amount of work.

The Board expressed its interest in meeting with Michele Giddens again, and

in working with Michele and Bridges Fund Management in the future. A Member suggested working together to identify current social problems where more effective solutions were needed, such as homelessness or social care, and pay due regard to the reputational good and social impact of investing in funds where there may be a trade-off. The Chief Grants Officer suggested linking Michele Giddens in with the Board’s strategic away half-day.

The Board thanked Michele Giddens for the excellent presentation and for her

contributions to the meeting.