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Institutional investors' role in community investment growing: study |
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A recently released paper on community investment in Canada suggests that there is a growing role for institutional investors. "There is a meaningful role for any financial intermediary, whether foundation, mutual fund, bank or credit union, venture capital corporation, insurance company or pension fund to play in financing community investments, " states the paper, entitles The Emergence of Community Investment as a Strategy for Investing in Your Community. The paper, recently released to the public, was prepared for the Saskatchewan Investing In Your Community Conference, held earlier this year. The research was conducted by Coro Strandberg, Principal of Strandberg Consulting, for Meritas Mutual Funds and VanCity Credit Union. In the paper, Strandberg states that such financing offers returns to the investor typically in the "low end of market." However, there are important social returns offered by such investment, she argues. "Community investing can help turn around communities, create opportunities for the disenfranchised, support environmental regeneration and underwrite affordable housing for the poor," the paper states. Strandberg states that the future of community investing in Canada points to a "full service community investment model," providing a range of financial support to community ventures through collaborating institutions. Such a model will provide additional opportunities for investment to institutional investors. One example of such a model is the recent collaboration between VanCity Capital Corp,. the venture capital arm of VanCity Credit Union, and Ecotrust Canada, non-profit organization dedicated to supporting the emergence of a conservation economy along North America's rain forest coast. Together the two institutions provided financing to jumpstart Eco-Lumber Co-op in Richmond BC, a co-operative created to produce, market and sell eco-certified wood products. For a complete copy of the report, visit www.socialinvestment.ca/CommunityInvestment.pdf
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