Impact Investing: Improving the World of Tomorrow RAHUL SITARAM INTERN/MENTOR GT CRAIG MELLENDICK ENTERPRISE COMMUNITY INVESTMENT

CONTENTS I.INTRODUCTION: BACKGROUND AND HISTORY OF FINANCE II.TRADITIONAL INVESTMENTS AND SECURITIES III.IMPACT INVESTING IV.WHICH IS BETTER? V.INTERNSHIP VI.DATA COLLECTION VII.PLANS FOR PRODUCT VIII.CLOSING QUESTIONS

Which entity is credited historically with having what is considered to be the first financial market? A.United States B.The Low Countries (Belgium and the Netherlands) C.United Kingdom of Great Britain and Northern Ireland D.United Socialist Soviet Republics (USSR) E. China QUESTION

Traditional Securities Stocks –Index Funds –Mutual Funds Bonds –Corporate Bonds –Zero Coupon Bonds Profits mainly come from exchange on market –Dividends –Bond interest payments Markets with proven track record

Impact Investing Many different options –Investments in municipal bonds –Low Income Housing Tax Credits (LIHTC) Investments provide social benefit –Green energy solution financing –Affordable housing development –Anti-poverty support programs Profitable, but in different ways Emerging markets, limited experience

So, which is better? Both have… –Financial return –Multiple avenues for profit –Incentives for reinvestment But… –Different types of investments Ultimately up to investor –What is the purpose of making an investment?

Internship Enterprise Community Investment –Enterprise Community Partners parent company Mentor: Craig Mellendick, Chief Financial Officer (CFO) Tasks: –Adjuster Agreements –Billing and Revenue Schedules –Fund Model –Analyze Fund performance –Research bond issuance

Data Collection Survey submitted to: –Financial experts at internship –Economics Challenge club –Other members of general public (through Facebook) Graphs will be added upon completion of analysis Results: –Education about impact investing necessary –Age group can affect profit motives

Plan for Product Create a brochure, educating about impact investing –Financial experts at internship –Economics students –Investors Important for impact investing to be recognized –New, viable alternative for capital raising

Closing Questions True or False? –Impact investing occurs in markets with proven track records. Answer: False –The United States had the first financial market. Answer: False –Traditional securities can offer multiple methods of earning profit. Answer: True –Index funds generally offer stable, steady growth over time. Answer: True –There is no alternative to investing in traditional securities. Answer: False