Stagars Impact Investment Funds for Frontier Markets in Southeast Asia

Creating a Platform for Institutional Capital, High-Quality Foreign Direct Investment, and Proactive Policy Making
2015
ISBN: 978-1-137-50727-3
Verlag: Palgrave Macmillan UK
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 221 Seiten, eBook

Reihe: Palgrave Studies in Impact Finance

Until now, most socially responsible and impact investments have centred on developed markets, with growth potential and investment opportunities in the frontier economies of countries such as Cambodia, Laos, Myanmar, and Vietnam being mostly overlooked. While some individuals and organizations have begun to develop responsible investment opportunities with these countries in mind, large new sources of capital for development could still emerge.

This book explores the greater potential for global investment in Southeast Asia, and the ways in which socially responsible investment styles can be used in their developing economies. It demonstrates how the benefits of investment could create a robust platform for separate stakeholders, including governments, non-governmental organizations, development banks, the financial sector, and small and medium sized enterprises. The author explores how shaping collaborative sustainable investment policies could speed up inclusive development, address the needs of those at the bottom of the pyramid, and ensure sustainable future growth.

Zielgruppe

Research

Autoren/Hrsg.

Stagars, Manuel

Inhaltsverzeichnis

1;Cover;1
2;Half-Title;2
3;Title;4
4;Copyright;5
5;Dedication;6
6;Contents;8
7;List of Figures;13
8;List of Tables;16
9;Preface;17
10;About the Author;19
11;Disclaimer;20
12;Introduction;22
12.1;What is new in this analysis?;23
13;1 Impact Investment: Where Are We Now?;27
13.1;What is impact investment?;28
13.1.1;Mandates of impact investment;30
13.1.2;Impact investment and conventional investment;31
13.1.3;Impact investment and SRI;32
13.1.4;Philanthropy and donations;33
13.1.5;Separating impact investment into components;34
13.2;Social impact investing;36
13.2.1;Acumen Fund;36
13.2.2;Ashoka;37
13.2.3;Calvert Social Investment Foundation;37
13.2.4;Elevar Equity;37
13.3;Social entrepreneurship and social enterprise;38
13.3.1;Social entrepreneurship;38
13.3.2;Social enterprise;40
13.4;Characteristics of existing impact investment funds;41
13.5;Characteristics of impact investors;43
13.6;Making impact investible and measurable;45
13.7;Social impact bonds and development impact bonds;46
13.7.1;Challenges for impact bonds in the frontier markets in the ASEAN;50
13.8;Funds and funding mechanisms;51
13.8.1;Vertical funds;51
13.8.2;Future-flow securitization;51
13.8.3;Front-loading of aid;52
13.9;Impact investment fund setup;52
13.10;Diversified impact portfolios;55
13.10.1;Reducing risk;58
13.10.2;Diversified impact portfolio across the value chain;59
13.11;Selecting and managing investments;60
13.11.1;Positive and negative screens;61
13.11.2;Impact criteria;61
13.11.3;Experience and mind-set of entrepreneurs;63
13.11.4;Mission lock;63
13.12;Summary and outlook;64
13.12.1;Lack of focus on the frontier countries in the ASEAN;65
14;2 Emerging and Frontier Markets in Southeast Asia;67
14.1;Overview of the ASEAN member states;68
14.1.1;Wealth;69
14.1.2;Investment;71
14.1.3;Current account balance;71
14.1.4;Constraints;71
14.2;Overview of the frontier markets in the ASEAN;74
14.2.1;Investment and wealth;76
14.2.2;Capacity;81
14.2.3;Urbanization;82
14.2.4;Market size;82
14.2.5;Industry sectors;83
14.2.6;Summary and outlook;89
15;3 Currently Available Conventional Investment Options in Frontier Markets;92
15.1;Frontier market investment overview;93
15.1.1;Exchange traded funds (ETFs) and mutual funds;94
15.1.2;Private equity firms active in Southeast Asia;96
15.2;Summary and outlook;97
16;4 Areas of Potential Impact Investment Intervention in the ASEAN Frontier Markets;100
16.1;Bottom of the pyramid (BoP);103
16.2;Inclusive development;105
16.3;Education and entrepreneurship;107
16.3.1;Higher education;108
16.3.2;Capacity building and entrepreneurship;109
16.3.3;Beyond formal education: incubators and accelerators;110
16.4;Sustainable transport;111
16.5;Financial infrastructure;113
16.6;Sustainable urbanization;114
16.6.1;City prosperity index;115
16.6.2;Urbanization trends: mega-regions, urban corridors, city regions;116
16.7;Cleantech and renewable energy;117
16.8;Disaster preparedness and water safety;119
16.9;Medical services;119
16.9.1;Health insurance;120
16.9.2;Subsidies and incentives for illness prevention;120
16.9.3;Improved health-system governance;120
16.9.4;Thailand as an example;120
16.10;Ecotourism;121
16.11;Sustainable farming and produce processing;123
16.11.1;Sustainable coffee;123
16.11.2;Large potential for sustainable farming;124
16.12;Summary and outlook;125
17;5 Concerns and Countermeasures;127
17.1;Perceived lower financial return of impact investment and SRI funds;128
17.1.1;SRI funds perform similar to conventional funds, outperform in bear markets;129
17.1.2;Risk, return, and correlation of impact investment;129
17.2;Size of the impact investment universe;131
17.2.1;Remittances and diaspora bonds;132
17.2.2;Foreign direct investment (FDI);134
17.2.3;Complementing development assistance and conventional debt;135
17.3;Fiscal health of host countries;137
17.3.1;Current account balance;138
17.3.2;Balance of payments cycle;140
17.4;Transparency of frontier markets in the ASEAN;141
17.4.1;Fraud and victim mentality;142
17.4.2;Economic incentives and impact criteria promote transparency;143
17.5;Risks of frontier market investment;144
17.5.1;Political risk;145
17.5.2;Legal risk;146
17.5.3;Operational risk;146
17.5.4;Currency risk;147
17.5.5;Counterparty risk;148
17.5.6;Execution risk;148
17.5.7;Liquidity risk;149
17.5.8;Unquantifiable risk;149
17.6;Risk management strategies;150
17.7;Complicated asset sourcing and management process;151
17.8;Is there enough demand from investors?;152
17.8.1;Investors care for social impact;153
17.8.2;Change in investment thesis;154
17.9;Existing programs for sustainable development;154
17.9.1;Action plan for private investment;156
17.10;Summary and outlook;157
18;6 High Potential of Impact Investment to Catalyze Sustainable and Resilient Development in Frontier Markets in the ASEAN;160
18.1;Complementing existing sources of capital;162
18.1.1;Financial aid programs;162
18.1.2;Conditional aid and development loans;163
18.1.3;Foreign direct investment (FDI);163
18.1.4;Impact investment as a complement to other capital sources;164
18.1.5;Less dependence on commodity price volatility;165
18.1.6;High-quality foreign direct investment;165
18.1.7;Attracting institutional capital;167
18.1.8;Proactive policy for sustainable development and impact investment;168
18.2;Summary and outlook;175
19;7 A Look into the Future: Building a Platform for Sustainability and Impact Investment;178
19.1;Platform thinking and network effects;179
19.2;Building a platform for sustainability and impact investment;180
19.2.1;Introducing economic motivators in sustainable development goals;183
19.2.2;A strategy to move forward;185
20;Conclusion;189
21;Notes;196
22;Selected Bibliography;212
23;Index;219

Über Autor(innen)

Manuel Stagars is an economist and senior researcher at Singapore-ETH Centre (SEC), interested in the technological and institutional aspects of data and data policy. He is also a serial entrepreneur with more than a decade of global experience. Manuel has a particular interest in emerging and frontier economies in Southeast Asia. He is also the author of Impact Investment Funds for Frontier Markets in Southeast Asia (Palgrave Macmillan, 2015).