1. Social Finance October 17, 2018
Brian Coburn, Director, Finance and Administration

2. Agenda OCF Background Definitions, beliefs, benefits & challenges
OCF Path
Current & Proposed Impact Investments

3. Ottawa Community Foundation
$150 million in assets
$12 million granted in 2017
$115 million granted since inception
900 individual funds

4. A Two-Pronged Approach
Social Finance
A Two-Pronged Approach

5. Responsible Investing
Best in Class Approach
Proxy Voting
ESG
environmental
social
governance

6. ESG Best in Class Approach
Choose among the best players rather than negative screening
Influence as an owner to encourage good corporate behaviour
Proxy Voting
Shareholder Association for Research & Education (SHARE)
Undertake a study of how investment managers vote
For or against management – benchmark against other institutional investors

7. PRI United Nations (UN) Principles for Responsible Investing (PRI)
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest

8. PRI United Nations (UN) Principles for Responsible Investing (PRI)
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry
Principle 5: We will work together to enhance our effectiveness in implementing the Principles
Principle 6: We will each report on our activities and progress towards implementing the Principles

9. Impact Investing Definition Core Belief Benefits Challenges
Type of Investments

10. Definition
The RIA uses the Global Impact Investing Network’s definition of impact investment:
“Impact investments are investments made into companies, organizations, and funds with the intention to generate a measurable, beneficial social and environmental impact along with a financial return.”

11. Core Belief
A blended “value” that multiplies the impact on our community while generating financial returns with an acceptable risk portfolio. Not choosing between financial return and social benefit.

12. Benefits Align assets with our mission Multiplies impact
Invests, where possible, in local community
Reasonable return with reasonable risk

13. Challenges Charitable sector readiness
Large scale investors and small scale enterprises
Skill set required for due diligence
CRA restrictions on business income generation

14. Ottawa Community Foundation – Our Path
1987 Inception ($500K local community leaders)
2010 Responsible Investing
2013 Impact Investing

15. OCF -Our Path
Responsible Investing (Became a PRI Signatory, incorporated ESG in our investment policy, began questioning new managers on ESG, instructed managers how to vote proxies)
Impact Investing (Established strategy both inside endowment and in a separate fund to provide debt/equity financing for charities and non-profits)

16. OCF -Our Path
Established committee comprised of Board members, Investment Committee members and experts on social finance
Set target of 10% of Endowment now of AUM - 5% Market (Mission-Aligned), 5% Direct (Program-Aligned)
Committee has delegated authority of $250,000.

17. Current and Proposed Impact Investments

18. Market Investments (Mission-Aligned)
Readily available in public financial markets
Expectation of market returns
Positive social or environmental impact, on a global scale

19. Direct Investments (Program-Aligned)
Made to agencies in the form of loans, patient capital, or guarantees
Generally fixed term and illiquid
Target market or below-market returns

20. Climate Change/Sustainability Global
Direct Investments – Impact Investing Fund
Market Investments – Endowment
Community Forward Fund
Raven Indigenous
Impact Fund
OCF Social Enterprise
Reserve Fund
Mercer Sustainable
Opportunities Fund
New Market Funds
Affordable Housing Fund
$5,000,000 US
($6,500,000 CDN)
Climate Change/Sustainability
Global

21. $1,000,000 Affordable Housing 75% BC and AB, 25% ROC
Direct Investments – Impact Investing Fund
Market Investments – Endowment
Community Forward Fund
Raven Indigenous
Impact Fund
OCF Social Enterprise
Reserve Fund
Mercer Sustainable
Opportunities Fund
New Market Funds
Affordable Housing Fund
$1,000,000
Affordable Housing
75% BC and AB, 25% ROC

22. Loans to NFP and charities Ottawa and national
Direct Investments – Impact Investing Fund
Market Investments – Endowment
Community Forward Fund
Raven Indigenous
Impact Fund
OCF Social Enterprise
Reserve Fund
Mercer Sustainable
Opportunities Fund
New Market Funds
Affordable Housing Fund
$1,280,000
Loans to NFP and charities
Ottawa and national

23. $55,000 Social Enterprise Ottawa
Direct Investments – Impact Investing Fund
Market Investments – Endowment
Community Forward Fund
Raven Indigenous
Impact Fund
OCF Social Enterprise
Reserve Fund
Mercer Sustainable
Opportunities Fund
New Market Funds
Affordable Housing Fund
$55,000
Social Enterprise
Ottawa

24. Indigenous Social Enterprise Ontario
Direct Investments – Impact Investing Fund
Market Investments – Endowment
Community Forward Fund
Raven Indigenous
Impact Fund
OCF Social Enterprise
Reserve Fund
Mercer Sustainable
Opportunities Fund
New Market Funds
Affordable Housing Fund
$50,000
Indigenous Social Enterprise
Ontario

25. Social Enterprise Platform

26. Social Enterprise Platform
OCF advocated for the Social Enterprise platform at the Innovation Centre at Bayview Yards
Social Enterprise incubator is a one-stop shop with business case development and other professional services
Micro-finance grants/loans in partnership with Alterna and the Centre for Social Enterprise Development (CSED)
Pilot with City, Ottawa Community Housing (OCH), and the Somali Centre

27. Resources ocf-fco.ca unpri.org riacanada.org communityforwardfund.ca
newmarketfunds.ca
share.ca
gresb.com
csedottawa.ca

28. Brian Coburn
Director, Finance and Administration