GEXSI has partnered with two financial sector organisations to pioneer innovative fundraising schemes that reach beyond charitable giving. The key purpose of these schemes is to fund our philanthropic investment fund (BoP Fund) as well as related coaching and mentoring activities.
The basic idea of these schemes is to partner with a financial sector organisation that waives a part of their fund-related fees to the benefit of GEXSI - as part of an ethical commitment or a Corporate Social Responsibility policy.
These partner products are (click on one to proceed to the description):
- The investment and the support of a social cause are disconnected and therefore do not distort the decision-making process of any investor.
- A win-win situation is created by the investment bank reallocating a significant proportion of their fees to support social causes.
- The social value offered is significant: Our partner negotiated with the participating bank to waive 1 % of their annual fees on the total amount invested, and to discount this revenue stream over 10 years.
- This results in a lump sum payment of 8% of the total investment. This corresponds to 800k EUR for an investment of 10m EUR.
- The beneficiary of this scheme is The Global Exchange for Social Investment (GEXSI) who will use the funds in line with its charitable mission to support social businesses, and regulated under UK Charity law.
- The Social Performance Bond is a structure that allows a supporter of GEXSI to invest for a period of 10 years, at which point the invested funds will be returned to the investor via a bank guarantee.
- The note pays a 4 % annual coupon. Any additional performance will be re-invested in the product an paid out when 10 years have passed.
- Over the 10-year period the performance target for the note is 250% of the invested amount, on top of the annual coupon of 4 %.
For more information, please contact: renner@gexsi.com.
The GoodGrowthFund is an investment fund that invests in a broader
range of investment products, with a significant proportion of microfinance.
The Fund is managed by BN & Partner, Switzerland, and has been placed
on the market in June, 2008.
The GoodGrowthFund strives for a triple social dividend:
- First, the asset allocation of the GoodGrowthFund covers a broad range of microfinance funds that are invested primarily in well established microfinance institutions (MFIs) who already service a large number of micro credit clients.
- Second, a proportion of the assets of the GoodGrowthFund will be allocated to finance the setting-up of new micro finance institutions. These investments allow to reach out to new regions where as of today access to micro finance is very limited.
- Third, as part of the ethical commitment of the fund initiator and distributor, a proportion of the issue surcharge is transferred to GEXSI as a charitable donation. GEXSI uses the donations to coach and mentor microfinance institutions and further social businesses, as well as to provide early-stage start-up finance through its charitable BoP Fund.
This scheme allows supporters of GEXSI to invest with a social benefit; the Fund targets both institutional investors as well as the broader public - the minimum investment is as small as 50 EUR.
For further advise on the Fund, please refer to www.goodgrowthfund.com. The information on this website is only to inform about the structure of this product; GEXSI is not entitled to give any investment advise.
For further information, please contact: info@goodgrowthfund.com.
