The Bay Area Impact Investing Initiative

Lauryn Agnew has been leading the efforts for the Bay Area Impact Investing Initiative which is gaining momentum: visit baiii.org for more information.

Initially based on research developed over the last couple years, the Bay Area Impact Investing Initiative was created to explore whether we could build a financial structure that would encourage and enable institutional investors to allocate to investing in their own backyards, recycling some of the local wealth back into our communities and aligning with a mission of regional, sustainable economic prosperity.

It started as a research study for the United Way of the Bay Area.  We were challenged to build a stock-and-bond portfolio that would be aligned with the mission to reduce poverty in the Bay Area by ½ by 2020.  The research was encouraged by the Federal Reserve Bank of San Francisco, who published the report and posted it on their website in December 2012.

This research led to a Fed sponsored day-long conference on May 7, with an outstanding group of panelists discussing the challenges and opportunities of impact investing in the regional economy of the San Francisco Bay Area.

For the agenda and white papers:

http://www.frbsf.org/community-development/files/Brochure-Impact-Investing-in-the-Bay-Area.pdf

To watch the video of the speakers and panels:

http://www.youtube.com/playlist?list=PLZ2lnRpiB6618WhePbPPV4vLhZJJzJZ_X

Many of us became convinced that adding impact intentions to our investment portfolios could not only improve our impact, it can also produce comparably strong returns to investors.   The Bay Area Impact Investing Initiative  (BAIII or BA Triple I) was formed to undertake the research to build model portfolios in all asset classes, under fiduciary standards of diversification, due diligence and prudent expectations of risk and return that would also have a positive impact on the economy and people of the San Francisco Bay Area.

Our research will include a market survey to identify investment beliefs about impact investing and place-based investing, as well as educational presentations to groups of investors, students, and communities.  We have built a small active team, an advisory board of experts, an advisory council of professionals, and retained a fiscal sponsor.

Welcome to our journey – join our efforts to prove that impact investing can work for institutional investors, helping to keep our own regional economy healthy, innovative, diverse and strong.

To learn more about the growing field of impact investing, see our research section for more information.

Announcements

1. The impact investing research paper is now posted on the Federal Reserve Bank of San Francisco website: Impact Investing for Small, Place-Based Fiduciaries:  The Research Study Initiated by the United Way of the Bay Area”, December, 2012.

The paper provides an analysis of impact investing, an understanding of fiduciary duty and a step-by-step handbook on how to build a stock and bond fund that is aligned with the mission to reduce poverty in the Bay Area, while meeting fiduciary standards of due diligence and performance expectations.

A shorter summary of this paper can also be found here.

2. The Bay Area Impact Investing Conference hosted by the Federal Reserve Bank of San Francisco is set for Tuesday,  May  7, 2013.

  • To highlight opportunities for impact investing in the Bay Area
  • To showcase some earlier success stories of impact investing in Bay Area
  • To discuss the State of the Bay and its long term investment needs in order to remain competitive, innovative and thriving
  • To present both opportunities and challenges to funding and investing for positive social impact and efficient, sustainable resource management while earning investment returns that meet fiduciary standards.

3. Call to Action:  Let’s develop the Bay Area Impact Investing Initiative

  • To build an understanding of the role of impact investing in the Bay Area
  • To assess past, present and future opportunities in Bay Area impact investing
  • To act as an educator /collaborator to pursue unique opportunities for impact investing in the San Francisco Bay Area
  • Develop a communications program to educate and enable impact investing in the Bay Area
  • Step 1: build Advisory Board and membership

For more information contact laurynagnew@sealcovefinancial.com.

Research Study: “Impact Investing for Small, Place-Based Fiduciaries”

Lauryn’s research study for the United Way of the Bay Area, “Impact Investing for Small, Place-Based Fiduciaries” has been posted as a working paper at the Federal Reserve Bank of San Francisco website. The research describes a process to build an investment portfolio that aligns the investments with the mission without sacrificing fiduciary duty or investment performance.

You can download the paper here or view it on the Federal Reserve’s website.

Impact Investing for Small, Place-Based Fiduciaries