UA-18572207-1
7 Steps to Faith Consistent Investing. Implementation Guide for Faith Institutions.
This publication supports both beginners in the field of Faith Consistent Investing by helping them to embrace this exciting opportunity and encourage those already engaged in the field to deepen their efforts. The 7 steps of implementation are supported by examples from the field. A self-assessment tool is part of the document and serves as a base line assessment as well as can be used for monitoring progress.

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Faith Institutions and Impact Investing. An Introduction
Impact Investing refers to investments that explicitly aim to respond to social or environmental challenges or and to support local community development while generating
financial returns.

This report introduces the topic of Faith Institutions and Impact Investing. Impact investments are investments that explicitly aim to respond to social or environmental challenges, while generating financial returns. Impact investing is not something new. Religious institutions have been practicing impact investing for many years, more in the form however of community development than from the financial investment approach.

In this report, one will find information on the various sectors, types and vehicles of impact investing and some suggestions on how to get involved. Some examples of the best practises of religious institutions are also offered. Lastly, some resources and investment opportunities are mentioned.


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Analysis of the Microfinance Sector. Faith Institutions and Impact Investing.
Historically the microfinance sector has been predominantly funded by non-commercial
investors, such as faith institutions and NGOs. The entrance of an increasing number of commercial investors has led to an increase in competition, particularly for funding of well performing microfinance institutions. Commercial investors are driven by profitability, therefore tend to compete for the most lucrative investments first and then move down the value curve. Non-commercial investors are driven by (sustainable) investment to alleviate poverty, opposed to purely profitability. The entrance of commercial investors is forcing non-commercial investors to make choices to protect their investment portfolios and charter objectives by learning from, and competing with, commercial investors. If no active management is undertaken, they risk having to scale down their investments, or even exit the microfinance market, which is contrary to their poverty alleviation objectives.

Whilst the report is primarily written for religious institutional investors, one should not underestimate the cascade effect that the initiatives of religious institutions have on their members and the civil society. While faith institutions may struggle to invest part of their portfolio in microfinance, the exemplary role of a church, synagogue or temple might have a significant influence on its members. Individual religious investors may often be less hesitant to change the mix of their portfolios and therefore microfinance can readily be considered as a potential alternative.

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