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Unlocking the Investment Potential of the Treasury Portfolio for the Benefit of Society
Big Society Capital, the UK-based Social Investment Institution, and Cambridge Associates, the global investment adviser, have pioneered a radical new approach for managing Treasury portfolios, in a move that could propel the UK’s social investment market to a new level.
The two organisations have found a unique way to unite the apparently conflicting aims of the ultra-conservative Treasury function and the ultra-creative social impact function. Using the new approach, BSC’s Treasury portfolio – which was previously managed according to conventional no-risk criteria – has been reshaped so that a greater proportion of the funds can be used proactively for social impact purposes without compromising either the generation of portfolio financial returns or the financial security of the company.
Also, they have identified an emerging group of innovative investment managers who are actively developing their capabilities in “impact investment”. These managers will be among the drivers of the growing impact investment industry in the years to come. This was a key outcome for BSC in furthering its market-building mandate.