Agenda item

To receive a report providing an update on the progress made in the five years since the Court approved the establishment of a Social Investment Fund.

SOCIAL INVESTMENT BOARD

(Peter Lionel Raleigh Hewitt, Alderman)

28 February 2018

Social Investment Fund: The First Five Years

The City of London Corporation’s Social Investment Fund was established in May 2012 in order to produce a positive social impact, whilst also helping to develop the social investment market through the influence of the Corporation and by demonstrating that social investment could be a financially viable model. £20million was allocated to this Fund from the assets of the Bridge House Estates charity, of which the City of London Corporation is the sole Trustee.

The Social Investment Board, at the time of its creation, undertook to provide regular

updates on its progress. In its first five years it achieved an IRR of 4.7% (gross), which is 2% in excess of the initial target. This demonstrated that, by making socially responsible investments, it was possible to have a positive social impact without compromising on financial returns. This was the City Corporation’s original intention in establishing the Fund, namely to demonstrate that social investment was a credible investment medium.

The Court therefore received a report updating it on the activities of the Social Investment Fund during its first five years, including details of the Fund’s financial performance, areas of investment, the Fund’s investment commitments to date and plans for the Fund for the next five years.

Resolved – That the progress made on the work of the Fund since it was established be noted.