10 August 20

Targeting Profit with a Purpose

Since the outbreak of the pandemic, the case for sustainable investing has grown stronger, demonstrated by the significant performance of global sustainable indices and ESG funds as well as the swell of support from ordinary investors and clients who increasingly see profit and purpose as a central goal.

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 the sustainable investment movement. Many organisations, large and small have entered the space, encouraged by a surge of support from governments and business leaders.

There is now a growing pool of investors who stand to benefit from a broad range of profitable asset groups, focused on addressing problems across societal inequality, healthcare and the environment.

According to a June 2020 survey, conducted by the Global Impact Investing Network ‘GIIN’, 88% of impact investors report meeting or exceeding their financial expectations, and a whopping 99% said they have met or exceeded their impact expectations.  

What is becoming increasingly clear is that investment solutions which address broader societal and environmental challenges have the greatest market demand in the long term. As governments commit capital to support businesses and families at this time and institutions around the world are changing their behaviour, it is those navigating solutions to the pressing challenges we face that stand to benefit. It will be the companies that understand and address the growing market opportunity that will prosper.

At Triple Point the opportunities we unlock each have a challenge at their core. We increasingly see investors not having to choose between financial returns and social impact.

Triple Point Impact EIS Service

The Triple Point Impact EIS Service is part of the expanding market opportunity, known as impact investing. The service targets significant capital growth by investing in fast-growing, innovative companies that have a positive social impact and which qualify for EIS tax reliefs.

The Service invests in companies that make a positive contribution to one of four 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. Depending on their circumstances, investors can also benefit from tax reliefs associated with EIS, including income tax relief of 30%, inheritance tax relief and tax-free growth.

Current Impact Investments

As part of the current portfolio, the Impact EIS Service has invested into two companies that have been identified as fast growing and having a positive impact in one of our four themes.

A digital health company that is reducing the cost and increasing the effectiveness of identifying melanoma skin cancer by providing dermatological quality digital images and diagnosis using artificial intelligence (‘AI’). 

An award-winning food tech company on a mission to improve health globally by connecting people with the food they need. The company launched in 2016 with a cloud-based B2B SaaS platform to help Hospitality clients digitise their recipes and menus to comply with new EU food allergen information legislation. Additional functionality was released enabling clients to analyse the nutritional make-up of their food, and communicate digitally with end customers.

These are two fantastic examples of the types of investments the Impact EIS Service targets. By focusing on opportunities that have a challenge at their core, the objective of the service is to do well by doing good.

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: The Triple Point Impact EIS Service carries places investor’s capital at risk. There is no guarantee that target returns will be achieved, and investors may get back less than they invested. Past performance and forecasts are not a reliable indicator of future performance. Tax treatment depends on the individual circumstances of each client and is subject to change. Tax reliefs depend on the EIS maintaining its qualifying status.

This financial promotion has been issued by Triple Point Administration LLP which is authorised and regulated by the Financial Conduct Authority no. 618187.