THE J.W. MCCONNELL FAMILY FOUNDATION

Beth HunterSr. Program Officer

Social finance, impact investing and foundations

From ‘Social Return on Investment’ and ‘Responsible Investment’

•Negative screening proactive triple bottom line

•Environmental, Social, Governance (ESG) standards

•Innovation in financial markets

To Impact Investing

•Investments that create positive social, environmental and economic impact, while generating financial return

Foundations

•Program related investments (PRI) & Mission related investments (MRI)

Social Finance: a range of financial instruments seeking to achieve social and environmental as well as financial returns

Foundations

Foundations

Value of reported impact investments

Current state of the market - supply

Source: Everett and xx, 2011

Current state of the market - demand

• Impact measurement and metrics

• Intermediaries

• Financial innovation & financial products

• Regulation

• Sector reputation

• Liquidity & exit strategies

Current Barriers

Market Development Barriers

1. Building the Marketplace 3. Sector Capacity Building2. Impact InvestmentsMRI/PRI

o Target of 10%

o Intermediaries

Social Innovation Fund

Social Finance at McConnell

Social Finance as a tool

3.5% 2.1%94.25%How is our

Foundation Capital allocated?

Social Finance at the Foundation

Impact Investments: