Individual Impact Investing Commission launched

14 November 2022

Cazenove Capital has joined up with the Beacon Collaborative and Big Society Capital to take part in the Individual Impact Investing Commission - a six-month challenge to better understand what holds wealthy individuals and families back from impact investing.

The Commission has produced a report that argues many high-net-worth individuals (HNWI) and wealthy families want a more value-led approach to their wealth, especially the younger generation. However, high-net-worth investors and some family offices do not typically have access to the same levels of resource as institutional investors or fund managers, and can be held back by a range of barriers, from under-informed advisors to a lack of impact management data.

Lyn Tomlinson, Head of Impact, Cazenove Capital, Commissioner, commented:

“As climate change and social inequalities threaten our way of life, public funding and charitable giving continue to fall short. But, with the rise of impact investing, the vital role of private capital has never been more apparent. It is estimated that up to £11 billion of private investments could be re-directed to impact investments, if only barriers to high-net-worth impact investing were addressed.”

The report identifies and focuses on five key barriers:

1. Lack of impact investment knowledge and expertise, marketing and promotion
2. The need for values-centred advice, including impact investing options
3. Lack of appropriate products and their availability
4. Limited understanding of tax reliefs and related incentives and the need for innovation
5. Low uptake of Impact Investment through charitable giving vehicles

The report makes several recommendations, which were presented at the launch event earlier this month at Cazenove Capital’s headquarters in 1 London Wall Place. Lyn Tomlinson, Head of Impact for Cazenove Capital and report commissioner, explored these recommendations.

Lyn Tomlinson commented: “Impact investing is quite a personal thing, and people need to be able to focus on the impact that they want to produce, and this could be different from one person to the next. A sliding scale of impact and financial returns allows investors to strike the balance that makes sense for them.”

The Commission was formed as a group of 11 leading impact investors, fund managers, advisors, advocates and experts in the HNWI investor world. Their experiences, ideas and requirements drive this report. They include:

•   Sir Harvey McGrath, former Chair of Big Society Capital (Chair)
•   Matthew Bowcock, Co-Founder & Chair at The Beacon Collaborative
•   Lyn Tomlinson, Head of Impact, Cazenove Capital
•   Jamie Broderick, Board member of Impact Investing Institute
•   Sherry Coutu, Entrepreneur and Philanthropist
•   Cansu Deniz Bayrak, Senior Partner, Bethnal Green Ventures
•   Ceris Gardner, Partner, Maurice Turnor Gardner LLP
•   Scott Greenhalgh, Chair of Certitude and former Executive Chair, Bridges Evergreen
•   Sarah MacFarlane, Senior Investor Relationships Manager, Big Society Capital
•   David Scott, Chairman at Tribe Impact Capital
•   Paul Tselentis, CEO, 24Haymarket

The project was funded via the Connect Fund, managed by Barrow Cadbury.

Dame Sara Llewellin, Chief Executive Barrow Cadbury Trust, commented:

“There is a new generation of high-net-worths seeking more than just profit, but to invest in benefitting people and our planet. It is vital we grow this movement, as the capital is uniquely flexible and potentially patient.”

Sarah MacFarlane, Senior Investor Relations Manager, Big Society Capital, commented:

"We hope this report will provide an important next steps towards opening up the conversation on how to navigate the impact investment market for wealth holders and advisors alike, to work together to create impact with capital.
"Forming these recommendations has been a truly collaborative process - we are proud to have worked with all stakeholders involved to help unlock more private assets for impact."

You can read the full report here.

ENDS

For further information, please contact:

Estelle Bibby, Head of Marketing and Communications      +44 20 7658 3431                estelle.bibby@schroders.com

Laura Keeble, Marketing Manager                                           +44 20 7658 1615  laura.keeble@schroders.com

Note to Editors

Cazenove Capital, the wealth management business of Schroders, is a frontrunner in the UK impact investing space. We manage nearly £10 billion of investments for charities and family offices. Our resource, expertise and culture – and most importantly our incredible clients – means that we have been a catalyst for impact investing. As a result, we have a vast amount of technical expertise in deploying impact-driven capital and creating impact-focused products. This includes the Schroders Big Society Capital Social Impact Trust which was co-designed by Cazenove Capital and seeded by our clients. We are delighted to use our experience and expertise to contribute to this report.

About Wealth Management

As a long-established wealth manager with an absolute focus on preserving and growing our clients’ wealth, what matters most to our clients, matters most to us.

Private individuals, family offices, trusts, institutions and charities all rely on us to provide them with bespoke wealth management services. Skilled in investment management, wealth planning and banking services – we also offer discretionary fund management to external advisers and their clients, and we are the largest charity fund manager by assets under management in the UK.

For two centuries we have helped clients look forward to a successful future. With each client, we plan for the long term and invest the time to gain a detailed understanding of their unique circumstances, goals and ambitions. Most of our clients, and many of our own people, work with us for years, decades and even generations. This creates relationships of unusual depth.

Our experience of navigating complex markets and adapting to change helps us balance risk and reward. The investment expertise we call upon as part of Schroders, a truly global asset manager, combined with our long-standing experience of advising clients, is what sets us apart.

Wealth Management office locations

Cazenove Capital: UK and Channel Islands. Schroders Wealth Management: Singapore, Hong Kong and Switzerland.

Schroders Wealth Management, including Cazenove Capital, has £96 billion in assets under management globally across all Wealth Management offices (including Benchmark Capital, part of wealth management) as at 30 June 2022.

Further information about Cazenove Capital can be found at www.cazenovecapital.com.

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The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested. Cazenove Capital is a trading name of Schroder & Co. Limited. Registered Office at 1 London Wall Place, London EC2Y 5AU. Registered 2280926 England. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped or monitored.