I4D
Investors for Development:
Presentation
“We need the commitment, the creativity and the
innovation of businesses to help us to tackle the
challenges that confront us”
Prime Minister David Cameron, on business
and the ‘Big Society’
Investors for Development I4D
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Investors for Development
An initiative led by the United Kingdom’s leading
investors to secure a commitment from the City of
London to allocate 0.7% of AUM to investments in
developing countries that generate significant financial
and social returns.
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I4D in Context
The opportunity
The Opportunity
 The power of finance as an investor in, and catalyst for, social value
and betterment
 A $1 trillion business opportunity over the next decade for ‘impact’
investments in poor countries, with potential profits of $600 billion
[Source: GIIN]
 An opportunity for the City of London to demonstrate that it is at
the forefront mobilising the positive power of capital and
investment in partnership with government
Investors for Development I4D
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I4D in Context
The Current Climate
 Increasing pressure to reverse the perception that finance
and investment produce either neutral or negative social
returns
 A growing expectation that business and finance must
play a role in addressing pressing social challenges
 A $500 billion funding gap for official aid over the next
decade
 Increasing criticism of the current aid model
Investors for Development (I4D)
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I4D in Context
The Challenges
 Lack of intermediation, little understanding of the
opportunities for investment and partnership
 Existing and potential regulatory obstacles
 Lack of clarity about government’s potential role in co-
financing and product development
 Need for product innovation, particularly in creating
‘blended value’ investment vehicles
Investors for Development (I4D)
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How I4D can meet the challenge
 By providing leadership and co-ordination within the
investment community
 Publicly demonstrating the City’s commitment to long term
values of sustainability and responsibility
 Creating a platform to assist government with regulatory
obstacles and support co-financing
 Improving collaboration between commercial investors,
philanthropic foundations and social investors on ‘blended value’
investment vehicles
Investors for Development I4D
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The returns from leading I4D
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2
3
4
Social ROI
Reputational
ROI
Political
ROI
Business
ROI
Global
Development
The City
Government/
Taxpayers
Investors/
Businesses
Investors for Development I4D
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Benefits for Global Development
 Increasing the sources available for financing development
and social investment
 Enhancing the UK’s positioning as an innovator in business
solutions for development
Investors for Development I4D
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Benefits for the City
 A response to the public’s demands for more socially-
responsible investment
 Providing the City with new investment opportunities in
high-growth emerging and frontier markets
 New investment products to meet client needs beyond
passive ESG investment screening
“The interests of profit and responsibility are
in no way opposed.” Vince Cable MP, Secretary
of State, Department Business Innovation and
Skills
Investors for Development I4D
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Benefits for Government
 An inclusive strategy which supports greater participation in the ‘Big Society’ from
the private sector
 Demonstrating the UK’s leadership within the G20 on innovative models in
leveraging private capital for poverty reduction and private sector development
 Leveraging public sector resources with private sector capital, particularly in this
constrained fiscal environment
 Creating opportunities for business development within the UK generated by
growing trade and investment links with high-growth, emerging economies
“It is wealth creation above all which will help poor
people to lift themselves out of poverty.” Andrew
Mitchell MP, Secretary of State, Department for
International Development
Investors for Development (I4D)
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I4D: Initial products and
I4D projects
 Development Impact Bond: building on the successful launch of the UK’s Social Impact Bond,
this mechanism has the potential to lever private financing for up-front investments in
development
 Blended Value Development Investment Fund: concessional or ‘patient’ capital that is able to
absorb some of the risks of investing in emerging and frontier markets
 Social Enterprise Limited Liability (SELL) Partnership: to remove obstacles to blending
philanthropic with private capital
 Impact Assessment of Development Investment on UK trade, investment, jobs and growth
 Pension Fund Reform: Reform of the regulatory environment, facilitating pension fund
allocations to opportunities in impact investment
Investors for Development (I4D)
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I4D will bring together
Visionaries
Founding
Founding
Members
Members
Exemplars
Exemplars
International
International
Advisory
Advisory Group
Group
Partners
Sir Ronald Cohen
Stephen Dawson OBE
Sir Richard Branson
Shell Foundation
Barclays
Stanley Fink
Tidjane Thiam
CIFF
Coca Cola
Unilever
Astra Zeneca
WPP
Diageo
Social Finance
Portland Trust
8 Miles Fund
Jacana Capital
Queen Rania
Mo Ibrahim
Patrice Motsepe
DFID
GIIN
CGI
Rianta Capital
Omidyar Network
Kenyan Equity
Bank
Lord Malloch Brown
Prime Ministers
Commonwealth
Oxfam
Care
Investors for Development (I4D)
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Milestones to June 2012
• Agree founding sponsors, partners
Phase 1 to June
2011
Phase 2 to
June 2012
Investors for Development (I4D)
and int’l advisory board
•Define work plan and projects
•Recruit skeleton staff, service
providers (research, consultancies, etc)
•London Launch
•Product suite launched
•Partnerships and projects underway
•Advocacy strategy underway
•New York CGI global launch
•Financial sustainability plan in place
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