DOCSLIB.ORG

UBS Optimus Foundation: from Giving to Investing

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
UBS Optimus Foundation: from Giving to Investing UBS Optimus Foundation: From Giving to Investing Prepared by pfc Social Impact Advisors November 2018 Acknowledgements pfc Social Impact Advisors thanks UBS and the UBS Optimus Foundation (UBSOF, Optimus, or the Foundation) for the support of this program of study. We also thank UBS CEO Sergio P. Ermotti, and UBSOF CEO Phyllis Costanza for their commitment to sharing the story of UBSOF. pfc also extends a sincere appreciation to the UBSOF Social Finance team of Maya Ziswiler and Sietse Wouters and their Foundation peers and partners who participated in the interviews and shared research (see Appendix A). Their honesty and candor represented in this case analysis exemplify a learning organization and Deliberate Leadership. Their real voices and stories of innovation, challenge, and change are what make this an exceptional global learning tool. Finally, a special thanks to the pfc staff and consultants who contributed their research, writing, editing, and design skills—D. Clancy, Meredith Rutland Bauer, Suzanne Lamoreaux, Jay Walljasper, Ali Webb, and Robert Yawson. Photo images courtesy of Mark Tuschman and UBS Optimus Foundation’s Communications. Gayle Peterson Senior Managing Director, pfc social impact advisors Associate Fellow, Saïd Business School, University of Oxford Director, Oxford Impact Investing and Social Finance Programmes Table of Contents Preface: Accepting the Challenge to Solve Humanity’s Toughest Problems ................................................ 1 Social Finance Primer ............................................................................................................................... 3 Just What Is Social Finance, and Why Does It Matter? ........................................................................ 3 Who Are the Players in Social Finance? ............................................................................................... 5 Social Finance Movement .................................................................................................................... 6 Measuring Impact Versus Activity ........................................................................................................ 6 Making Money Matter ......................................................................................................................... 6 Introduction: Capital With a Cause .............................................................................................................. 7 Sustainable Development Goals .............................................................................................................. 8 Setting the Context: How UBS and UBSOF Meet Client Needs .................................................................... 9 Social Finance in Action .............................................................................................................................. 15 Phase 1 ................................................................................................................................................... 16 Phase 2 ................................................................................................................................................... 19 Phase 3 ................................................................................................................................................... 20 UBSOF’s Social Finance Instruments in Action ....................................................................................... 20 Does Pay for Success Work? Educate Girls DIB Offers Proof of Concept ................................................... 21 The Wicked Problem .............................................................................................................................. 22 From Idea to Pilot ................................................................................................................................... 22 The DIB: Partners, Committed Financing, and Measurable Results ....................................................... 23 The Partners ....................................................................................................................................... 24 The Financing ..................................................................................................................................... 25 Operationalizing the DIB: Goals and Process for Achieving Results ................................................... 27 Bringing It Together ................................................................................................................................ 28 Results, Outcomes, Success ................................................................................................................... 29 Year One: Getting Underway ............................................................................................................. 30 Year Two: Progress and Course Correcting ........................................................................................ 31 Year Three: Focus on Underperformance .......................................................................................... 31 Complicated and Time-consuming…But Useful ................................................................................. 32 Lessons Learned in Rajasthan’s Schools ................................................................................................. 32 Lesson 1: Listen to Community .......................................................................................................... 32 Lesson 2: Build Early Alliances with Government .............................................................................. 33 Lesson 3: Reach Out Early to Service Providers ................................................................................. 34 Lesson 4: Communicate Candidly with Donors .................................................................................. 34 Lesson 5: Build in a Long Lead Time ................................................................................................... 35 Lesson 6: Adapt to Cultural Conditions .............................................................................................. 36 Lesson 7: Incorporate Evaluation and Learning from Start to Finish ................................................. 37 Conclusion .............................................................................................................................................. 38 Three Social Finance Projects: Development Impact Bonds and a Social Success Note ............................ 39 Utkrisht Maternal and Newborn Health DIB .......................................................................................... 40 The Wicked Problem .......................................................................................................................... 40 Partners and Participants ................................................................................................................... 40 Program Structure and Strategy ......................................................................................................... 42 Goals and Process for Achieving Results ............................................................................................ 43 Lessons Learned from Early Days of Utkrisht Maternal and Newborn Health DIB ............................ 44 Conclusion .......................................................................................................................................... 45 Impact Loan (Social Success Note) to Impact Water .............................................................................. 45 Wicked Problem ................................................................................................................................. 45 Partners and Participants ................................................................................................................... 45 Goals and Process for Achieving Results ............................................................................................ 47 Results, Outcomes, Success ............................................................................................................... 47 Conclusion .......................................................................................................................................... 48 The Quality Education India DIB ............................................................................................................. 48 Wicked Problem ................................................................................................................................. 48 Partners and Participants ................................................................................................................... 49 Program Structure and Strategy ......................................................................................................... 50 Goals and Process for Achieving Results ............................................................................................ 51 Early Lesson Learned: Open Communications are Essential .............................................................. 52 Conclusion .......................................................................................................................................... 53 Deliberate Leadership in Action ................................................................................................................
Load more

Recommended publications
  • Who Benefits? Symposium on Equity, Diversity, and Inclusion in Social Finance in New York City
    Who Benefits? Symposium on Equity, Diversity, and Inclusion in Social Finance in New York City 1 Contents Introduction 4 Background on the Symposium 5 Definitions 6 Why is Examining EDI in Social Finance Important? 7 Our Hypotheses and the New York City Context 8 Who Benefits? 9 The Symposium Survey 10 Key Learnings 1 Minority and Women Entrepreneurs Face Numerous Challenges 12 Obtaining Social Finance Capital 2 Minority and Women Social Finance Investors Face Numerous 16 Challenges Raising Capital 3 Implicit Bias has a Role in Preventing Equitable Impact Investment 18 4 Community Investment has a Mixed Legacy that Impacts 22 Social Finance EDI 5 There are EDI Lessons Social Finance Can Learn from 24 Traditional Investors 6 A Successful EDI Strategy Benefits from a Diverse 28 and Committed Leadership Team EDI Toolbox for Social Finance Organizations 30 Appendix 32 Citations 34 3 Introduction The purpose of this white paper is to present the Why this topic and why now? In April of 2017, current state of equity, diversity, and inclusion (EDI) the Ford Foundation announced it was devoting in the social finance sector in New York City, as well up to $1 billion from its $12 billion endowment over as to offer possible paths forward by highlighting the the next ten years to mission-related investing. pioneering work of select organizations in the sector. The foundation has made clear in its announcement To do this, the Social Innovation and Investment that as it launches its mission-related investing, one Initiative (the Initiative), housed within New York key objective is to promote EDI within the social University’s Wagner School of Public Service, investment movement, paying attention to the compiled current research as well as insights from makeup of investment teams, as well as where a diverse group of industry professionals brought they invest, and with what values.
    [Show full text]
  • Using Impact Investment to Expand Effective Social Programs Luther Ragin, Jr.* Global Impact Investing Network Tracy Palandjian Social Finance, Inc
    Community Development INVESTMENT REVIEW 63 Social Impact Bonds: Using Impact Investment to Expand Effective Social Programs Luther Ragin, Jr.* Global Impact Investing Network Tracy Palandjian Social Finance, Inc. o address the wide-ranging challenges facing the United States, collaboration among philanthropy, government, and the investment community is vital. Social impact bonds (SIBs) offer a new way to advance cross-sector partnerships and introduce innovative financing solutions to scale proven preventative social Tprograms. SIBs operate at the intersection of three important trends: greater funder interest in evidence-based practices in social service delivery; government interest in performance- based contracting; and impact investor appetite for investment opportunities with both financial returns and social impact. This article focuses on how impact investors in SIBs can help drive improved perfor- mance in the US social sector while providing growth capital to effective nonprofit or social enterprise social service providers. The true power of SIBs lies in the discipline that inves- tors can bring to the process of provider selection and delivery of social services. When government, investor, and provider expectations are aligned, SIBs have the potential to bring significant new capital and efficiencies to social service delivery. A New Vehicle for Impact Investors Interest in impact investing has grown substantially in recent years. The Rockefeller Foundation and others effectively make the case that addressing complex societal problems requires larger scale funding and greater collaboration among philanthropists, government, and private investors. Although impact investment is only a small proportion of the total assets under professional management, it represents a significant and growing pool of capital that can fund programs to address social problems.
    [Show full text]
  • Navigating the ESG Landscape for Sovereign Debt Managers
    FINANCE FINANCE EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT Riding the Wave: Navigating the ESG Landscape for Sovereign Debt Managers Sebastien Boitreaud, Ekaterina M.Gratcheva, Bryan Gurhy, Cindy Paladines, and Andrius Skarnulis © 2020 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO), http:// creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: Sebastien Boitreaud, Ekaterina M.Gratcheva, Bryan Gurhy, Cindy Paladines, and Andrius Skarnulis.
    [Show full text]
  • Better Finance Better World Consultation Draft of the Blended Finance Taskforce
    BETTER FINANCE BETTER WORLD CONSULTATION DRAFT OF THE BLENDED FINANCE TASKFORCE In partnership with the Business and Sustainable Development Commission and SystemIQ The Taskforce has written Better Finance, Better World with secretariat support provided by SYSTEMIQ, and is guided by its Steering Committee. The Taskforce is grateful for the input of numerous special advisors and support from independent contractors including Climate Policy Initiative, Convergence and KOIS Invest. Steering Committee members of the Blended Finance Taskforce act in their personal capacity and support the general thrust of the arguments, findings and recommendations made in this report (but should not be taken to agree with every word or number). The institutions with which they are affiliated have not been asked to formally endorse the report. Readers may reproduce material for their own publications, as long as they are not sold commercially and are given appropriate attribution. Copyright Business and Sustainable Development Commission. This work is licensed under a Creative Commons License Attribution-NonCommercial 4.0 International (cc by-nc 4.0). Business and Sustainable Development Commission (Blended Finance Taskforce) c/o SYSTEMIQ 69 Carter Lane London EC4V 5EQ United Kingdom www.businesscommission.org Cover photo: Scania Group/Flickr CONTENTS The Blended Finance Taskforce 5 Highlights 6 Executive Summary 7 Key takeaways 7 Better finance, blended finance 8 What is blended finance 10 Where is blended finance needed 11 Blended finance in action 13 Why
    [Show full text]
  • Green and Social Finance Development Around the World
    BACKGROUND PAPER Green and Social Finance Development around the World Dragon Yongjun Tang DISCLAIMER This background paper was prepared for the report Asian Development Outlook 2021: Financing a Green and Inclusive Recovery. It is made available here to communicate the results of the underlying research work with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally-edited texts. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this document and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. Any designation of or reference to a particular territory or geographic area, or use of the term “country” in this document, is not intended to make any judgments as to the legal or other status of any territory or area. Boundaries, colors, denominations, and other information shown on any map in this document do not imply any judgment on the part of the ADB concerning the legal status of any territory or the endorsement or acceptance of such boundaries. GREEN AND SOCIAL FINANCE DEVELOPMENT AROUND THE WORLD 1 Dragon Yongjun Tang2 HKU Business School The University of Hong Kong April 2021 Abstract Green and social finance has become mainstream around the world.
    [Show full text]
  • Innovative Finance for Employment
    INNOVATIVE FINANCE FOR EMPLOYMENT THE POTENTIAL FOR WOMEN AND URBAN YOUTH MUVA is a Mozambican NGO supporting women’s economic empowerment through the creation, testing and adapting of innovative approaches to diminish barriers vulnerable women and youth face to thrive in the labor market. It is funded by UK Aid and The French Development Agency (AFD), having a range of projects including with USAID, The World Bank, and private sector companies. Social Finance is a not-for-profit organisation that partners with government, the social sector and impact investors to find better ways of tackling social problems and improving the lives of people in need. EXECUTIVE SUMMARY he need for female economic empowerment in Mozambique is clear; just 24% of women have access to wage employment, versus 50% of men. The situation is worse still in Turban settings where 19-24-year-old women have the highest unemployment rates in the country. The national rate of formal employment is approximately 13%, and large scale formal job creation in the Oil and Gas sector is yet to materialise. Despite impressive economic growth in recent years, 50% of Mozambicans are still living in poverty and social and economic inequalities are continuing to grow. The challenges faced by disadvantaged urban youth and women (DUYW) are severe; without deliberate intervention to address the constraints facing them, this trend is set to worsen. In light of this challenge, MUVA commissioned a scoping study to assess the potential of innovative financing models to support the economic empowerment of disadvantaged urban youth and women. Innovative finance is a broad spectrum of mechanisms that offer an alternative to traditional activity based grant funding.
    [Show full text]
  • Mike Burns Delivers His Verdict
    INSIDE THIS ISSUE: JOHN CRAWLEY “THE PCA HAS BEEN A FANTASTIC HELP IN SMOOTHING OVER MY JOURNEY FROM THE GAME” PLUS: CAREER FOCUS ON SALES ROUTES INTO LORRY DRIVING HOW’S THAT, UMP? MIKE BURNS DELIVERS HIS VERDICT NEW SEASON, NEW YOU: THE IMPORTANCE OF STAYING MENTALLY & PHYSICALLY FIT & THE PROGRESSION OF THE PERSONAL DEVELOPMENT & WELFARE PROGRAMME EDiToR’S WELcoME jaSoN RaTcLiFFE FrOM THE EDITOr BEYoND ThE BouNDaRiES iS puBLiShED BY ThE pRoFESSioNaL cRickETERS’ aSSociaTioN, Welcome to issue 10 of Beyond the Boundaries. hoWEVER ThE ViEWS ExpRESSED iN coNTRiBuTED aRTicLES aRE NoT NEcESSaRiLY ThoSE oF ThE Here at the PCA, we’ve just completed our county visits, travelling the length pca, iTS MEMBERS, oFFicERS, EMpLoYEES oR gRoup coMpaNiES. and breadth of the country to meet with the membership. It’s a busy time but incredibly important, as we both inform and canvass opinion on the latest BEYOND THE BOuNDArIES EDITOr issues of the day. All current players are fi lling out their annual survey, which jaSoN RaTcLiFFE [email protected] covers a multitude of cricketing issues. EDITOr (FOr BOWLESASSOCIATES) SiMoN cLEaVES The domestic structure has once again come to the fore in the wake of the [email protected] Morgan Review and we will ensure the playing membership, those at the very CONTrIBuTOrS heart of the game, play a key role in shaping the future of professional cricket. Nick DENNiNg jiM hiNDSoN chaRLiE MuLRaiNE Since the launch of our membership scheme - announced in issue eight of RachEL NEWNhaM BtB - we have generated over 500 pieces of information and new contacts, STEVE SNELL iaN ThoMaS many of whom have helped us to rediscover past players.
    [Show full text]
  • Social Finance Primer: Locating New Sources of Capital for an Equitable
    Social Finance Primer: Locating new sources of capital for an Equitable Recovery The Institute of Southern Georgian Bay – 2020 Mapping Our Road to Recovery series Marilyn Struthers, June 11, 2020 [email protected] Four big themes emerging: Collaboration is a must for recovery: among municipalities in our region and among the social sector, business, municipalities, and the philanthropic sector. As a cluster of smaller communities, we recognize that our capacity for connectivity and networked relationships is an asset. Access to capital will be an issue and we will need to reach beyond traditional sources to: o restart the economies that have been restricted by Covid-19, and o support people who were already disadvantaged before the pandemic and have suffered disproportionately as a result. This is the idea of floating all boats and an Equitable Recovery. We need innovative planning mechanisms that allow for collaboration around strategy for social investment. The ideas are a Social Investment Fund and a Community Investment Strategy to leverage investment and engage partners in pooling financial capacity for public good. The social sector is currently in deep financial distress as a result of revenue and donation loss and increased demand during the COVID-19 period. We can assume this distress will continue as tax and business losses are realized. So what is Social Finance & why did it emerge? The conversation about social finance emerged in Canada because of reductions in government funding through the mid 90’s and the decade that followed. There was recognition that the biggest barrier to the Canadian social sector doing its job of tending community wellbeing, was access to capital.
    [Show full text]
  • Our World Cup Winner
    LIFELENT2018 Our World Cup winner ISI Inspection ‘excellent’ rating A special visit from a FIFA U17 World Cup champion First Form tech whizz goes viral A stellar Government Inspector production An outstanding Autumn Collection concert Trips galore and much more… sport Football’sCallum coming home Old Whitgiftian, Callum Hudson-Odoi, recently highlighted by The Guardian in the ‘60 of the best young talents in world football’ list, enjoyed jubilant celebrations in October, after defeating Spain 5-2 in the FIFA U17 World Cup Final. Following a 3-1 win against Brazil academic development, Callum in the semi-final, England found joined a group of (very excited) themselves facing their old rivals Upper First Form footballers in the closing match, hosted in in the Marlar Halls. Director India. Many of the team had of Sport, Mr Alistair Osborne, featured in the U17 European introduced him to the boys, Championship final, in May, impressing upon them that in when Spain had beaten England addition to Callum’s natural on penalties. England found talent, part of his success to date themselves 2-0 down early in the has been down to his willingness game, but came back after half to apply himself, the respect he time scoring five without reply, shows his coaches, and being with Callum taking the role of a good example to his peers. chief goal creator. Callum was then surprised with a video featuring his sporting Callum joined Whitgift in 2012, highlights whilst at Whitgift. A having been with the Chelsea Q&A session followed, where Academy since the age of eight.
    [Show full text]
  • Financing Healthcare Services for the Poor
    Impact Investment Shujog Limited Financing Healthcare Services for the Poor Financial Innovation for Poverty Reduction Series Impact Investment Shujog Limited 2014 Financing Healthcare Services for the Poor Contents Executive summary ................................................................................................................................. 2 1 Introduction .................................................................................................................................... 4 2 Financing Healthcare ...................................................................................................................... 6 2.1 The Global Healthcare Value Chain ........................................................................................ 6 2.2 Access to Healthcare ............................................................................................................... 8 2.2.1 Which Countries are Achieving Universal Healthcare? .................................................. 9 2.3 Financing Universal Access to Healthcare Services .............................................................. 12 3 Innovative Financing Solutions ..................................................................................................... 15 3.1 Donor Mechanism: Crowdfunding ........................................................................................ 16 3.2 Blended Capital: Social Impact Bonds ................................................................................... 17 3.3 Blended
    [Show full text]
  • MGL Full Year 2020 Annual Report
    MACQUARIE GROUP ANNUAL REPORT Year ended 31 March 2020 MACQUARIE GROUP LIMITED ACN 122 169 279 Macquarie is a global financial services group operating in 31 markets in asset management, retail and business banking, wealth management, leasing and asset financing, market access, commodity trading, renewables development, investment banking and principal investment. 2020 Annual General Meeting Macquarie Group Limited’s 2020 AGM will be held at 10:30 am on Thursday, 30 July 2020 at the Sofitel Sydney Wentworth, Wentworth Ballroom, 61–101 Phillip St, Sydney NSW 2000 and may be held as a hybrid or virtual meeting with online facilities to comply with any COVID‑19 restrictions. Details of the business of the meeting will be forwarded to shareholders separately. We are closely monitoring the COVID‑19 pandemic and, depending on government restrictions in place at the time the meeting is held, the meeting venue may be changed. Shareholders should refer to the Macquarie website and any ASX announcement concerning the venue of the meeting. Cover image Macquarie is one of the largest agricultural investment managers in the world. Located in Western Australia, the Tantanoola property – operated by Macquarie‑managed Viridis Ag – grows grains such as wheat, barley, lupins and canola. 0102 About Governance Contents About Macquarie 7 Corporate Governance 30 Letter from the Chairman 8 Diversity & Inclusion 38 Letter from the Managing Director Environmental, Social and Governance 42 and CEO 10 Macquarie Group Foundation 62 Contributing to communities through
    [Show full text]
  • Are Impact Bonds Delivering Outcomes and Paying out Returns? Measuring the Success of Impact Bonds
    MEASURING THE SUCCESS OF IMPACT BONDS ARE IMPACT BONDS DELIVERING OUTCOMES AND PAYING OUT RETURNS? MEASURING THE SUCCESS OF IMPACT BONDS ARE IMPACT BONDS DELIVERING OUTCOMES AND PAYING OUT RETURNS? Emily Gustafsson-Wright is a senior fellow in the Global Economy and Development Program at Brookings. Meg Massey is an independent consultant. Sarah Osborne is a senior research analyst in the Global Economy and Development Program at Brookings. MEASURING THE SUCCESS OF IMPACT BONDS Acknowledgements The authors would like to thank a number of individuals who provided invaluable edits and insights on this brief: Alison Bukhari, Andrew Levitt, Mila Lukic, Tamar Manuelyan Atinc, and Sowmya Velayudham. Excellent research assistance was provided by Izzy Boggild-Jones and Onyeka Nwabunnia. Outstanding design support was provided by Shavanthi Mendis, and Katherine Portnoy provided excellent editorial support The Brookings Institution is a nonprofit organization devoted to inde- pendent research and policy solutions. Its mission is to conduct high-quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public. The conclusions and recommendations of any Brookings publication are solely those of its author(s), and do not reflect the views of the Institution, its management, or its other scholars. Brookings gratefully acknowledges the support provided by the UBS Optimus Foundation and British Asian Trust. Brookings recognizes that the value it provides is in its commitment to quality, independence, and impact. Activities supported by its donors reflect this commitment. 2 ARE IMPACT BONDS DELIVERING OUTCOMES AND PAYING OUT RETURNS? MEASURING THE SUCCESS OF IMPACT BONDS Overview This brief, the third in a series of five analyzing various dimensions of the success of impact bonds, examines available data on outcome achievement and investor returns on completed impact bond projects across the globe.
    [Show full text]