Instrument of the Future?
The investment periods of SIBs are long, even up to 10–15 years, so investors need to have a long investment horizon. Impact investment typically seeks moderate profits. On the other hand, the relevance and social benefit of the investment is a major factor for many investors.
At the early stages, SIBs are directed at professional investors—in Finland typically institutions. However, the parties to the project have their sights set on one day being able to offer these instruments to the general public. It would be great if everyone could participate in contributing to the common good, even with smaller sums. How well SIBs would work for small investors is certainly an important question. For example, what kind of background information would retail investors need to support their investment decisions.
Työ-SIB is a great example of a project that will benefit everyone by succeeding: unemployed jobseekers will get more tailored services, companies will get workers, the public-sector economy will get results and savings, and investors will get a moderate profit and the satisfaction of having contributed to improving society.
FIM’s director of impact investing Jani Kempas believes that impact investing is a matter of pride for many investors:
‘As a society, we are facing many challenges that call for new kinds of solutions. There are many impact investing products currently in development to meet these challenges, and I hope that at least some of them see the light of day soon.’