Several of the UN's sustainable development goals relate to social impact, and it is providing capital for those that social bond funds focus on, according to Tammie Tang, senior portfolio manager at Columbia Threadneedle Investments.
Speaking with FTAdviser as part of the Responsible Money series of video interviews, Tang said: “The aim of a social bond fund is to deliver a return. A return both in the traditional risk-adjusted sense and also in terms of it being an opportunity to help communities in areas such as healthcare, housing and infrastructure.”
She said the “spectrum of issues” is wide and the number of issuers of social impact bonds similarly varies from small organisations to government’s and transnational organisations.
Tang said that progress is not being made on the 17 SDGs that relate to social outcomes, "and if anything I think we are regressing in some areas," she noted.
"But I think social bonds are natural area of investment, and a good way to provide capital, alongside public and private equity."
You can watch the video by clicking on the image above.
david.thorpe@ft.com
