Impact Investment: Barriers and Opportunities

TBC Capital's Geoff Moore talks to Forbes.

November 16, 2011

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sproutI read an interesting interview with Canadian money manager, Geoff Moore in Forbes earlier this month. Moore has co-founded a firm called TBC Capital Inc. that specializes in impact investment. Moore says mainstream investors have much to learn about this burgeoning space, which seeks investment opportunities that create social and environmental benefits. In this Q&A, Moore discusses the importance of impact investing and — in particular — why a narrow interpretation of “fiduciary duty” is a barrier (see Ashby Monk’s latest post for more on this). Says Moore:

In mainstream investment circles, most investors are not yet familiar with the term impact investing. The JP Morgan and Rockefeller Foundation report: “Impact Investments: An Emerging Asset Class”, and the growing body of research on related topics does not easily fit into traditional asset allocation paradigms at the moment.   Most people have not been exposed to the concept of investing in civil society organizations, and the often jaw-dropping stories of social entrepreneurs are way off in the shadows of business entrepreneurs.

Another extremely important issue is the barrier that prevailing narrow interpretations of fiduciary duty can create.  There are examples, such as the work Mercer released on climate change earlier this year, which demonstrate that it is in the best interests of institutional investors to seriously consider the financial implications of environmental change on their portfolios.

Read the full interview here.

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