Social Investment Ten Years On

This report, by the Social Investment Task Force, looks at the changes that have occurred over the past decade in the market for social investment in the U.K.

Socially Responsible Investment funds have seen robust growth over the last decade. Investment in microfinance has grown significantly over the past few years, with major investment banks now involved in raising and structuring finance for MFIs. Social investment has begun to spread into investments that are diverse in terms of social mission, structure and risk-reward profile. Intermediaries and associations that promote social investment and social entrepreneurship have been formed and the Social Stock Exchange is developing the idea of establishing a trading platform for social investments.

The report highlights three specific initiatives that will help define the future of social investment in the U.K. These include:

• Establishing infrastructure necessary to create a dynamic market in social investment through initiatives such as the Social Investment Bank;
• Creating new tools to deliver social change through financial instruments such as the Social Impact Bond;
• Engaging the financial sector to invest in disadvantaged areas through a Community Reinvestment Act.