The MMS Community Finance Fund aligns with emerging trends in investing and social enterprise. On the global level, the G8 established a multi-country Social Impact Investment Taskforce in 2013. Expectations were exceeded and the prospect for growth in global social investment markets continues to expand. Work is now underway to extend social investment markets beyond the G8 to countries such as Israel, South Africa, Mexico, India and China.
Lead by the NSW government, Australia is also participating in social investment funding. Building on successful bonds which were structured to yield strong investment returns while, in one instance, relieving pressure on the foster care system, and in another, allowing a collaboration of well established charitable organisations to purchase 678 childcare centres, NSW has created on Office of Social Impact Investment which plans on launching two “social benefit bonds” each year. Bond coupons become payable when specified saving from community programs are achieved.
In another arena, Impact Investing Australia was established in 2014 with the goal of encouraging wider participation by governments, investors and non-profit organisations. It estimates that social impact investing could reach $32 billion in Australia within ten years. Insurer QBE has already pledged $100 million for social benefit bonds over the next three years and National Bank Australia will make grants to social organisations for the development of business plans to win external funding.
As noted by James Eyers in the July 13 edition of the Australian Financial Review, Social Impact Investing offers a winning opportunity not only for governments, but also for entrepreneurs, allowing them to pursue social or environmental missions in partnership with their financial supporters.
MMS is proud to be following the Social Investment Funding model, providing investors with a competitive return rate whilst investing in the school’s future.