24-Apr-19

Targeting Profit with a Purpose

The notion of sustainable investment has been around for decades, but in the last few years there’s been an acceleration, an evolution in a concept that has enabled investors to see the idea as a genuine marriage of profit and values. Impact investing, which seeks market rates of return by investing in companies that have a positive social and environmental impact on society, is at the forefront of this movement.

In the most comprehensive sizing of the market to date (April 2019), the Global Impact Investing Network “GIIN” found that over 1340 organisations currently manage over $502bn in impact investing assets worldwide. This includes BlackRock, Goldman Sachs and the private equity giant KKR, which have all launched social impact funds. For the CEO of ‘GIIN’, it’s clear that we are experiencing significant global momentum in this space;

“Major firms, large and small, are entering the impact investing market every week, and the industry has received a swell of support from governments, academics and business leaders.”

Targeting Profit with a Purpose

Unlike philanthropy or other forms of ethically motivated investing, today many investors do not expect to give up financial upside just because they have other objectives. In 2018, Triodos, a sustainable bank, found that nearly two thirds of UK citizens would prefer their money supporting companies that were both profitable and having a positive social impact. 

What’s more, with sustainable investing in some form going back since the 1990s, impact investing now has a track record – and it’s a positive one. There is mounting evidence that funds focused on these types of investments have offered neutral to positive performance over non-sustainable investments over periods of one, three, five, and ten years.

Triple Point Impact EIS Service

The Triple Point Impact EIS Service is part of this expanding market opportunity, targeting significant capital growth by investing in fast-growing, innovative companies that have a positive impact on society and which qualify for EIS tax reliefs.

The Service invests in companies that make a positive contribution to one of four social themes: health, environment, children & young people and inequality — with each investor holding a portfolio of 8 to 12 companies, ensuring diversification within the investment too.

Financial returns are targeted by investing in unlisted growth companies that are already generating revenue and have the potential to provide a significant capital return over a four-to-seven-year period. Investors can also benefit from tax reliefs associated with EIS, including income tax relief of 30%, inheritance tax relief and tax-free growth.

Recent Impact Investments

Earlier in the month the Impact EIS Service was delighted to announce investments into two new companies that have been identified as fast growing and having a positive impact on society.

GripAble produces technology that can help to significantly improve the rehabilitation of patients suffering from movement and cognitive disabilities through a combination of hardware, data and using video games in a non-gaming context. The first product is a highly sensitive digital hand-held device that allows for fun repetitive training of hand and whole arm movements. GripAble connects wirelessly to a mobile app, through which the company delivers engaging and motivating activities, tracks progress, and personalises goals to each user. So far GripAble has been used with over 900 patients living with a range of impairments due to such conditions as stroke, cerebral palsy and trauma.

We Are Digital is a training and support services firm with a mission to help organisations tackle digital and financial exclusion for their customers and help them access critical services. It offers training primarily through a national network of vetted tutors and delivery partners, offering 1:1, group support and outsourced programme management. We Are Digital work closely with housing associations, government departments and corporates. It already has contracts relating to assisted digital support for the Home Office.

If you have any further questions about our Impact EIS Service or any of our other investment solutions, which include our Income Service, Estate Planning Service and Venture Fund VCT, please get in touch on 020 7201 8990.

Risk Warning: As with all investments, our products place capital at risk. There is no guarantee that target returns will be achieved and investors may get back less than they invested. Tax rules and reliefs are subject to change.

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