12. Jeremy Rogers, CIO,  Better Society Capital - Investing for Impact Without Losing Sight of Returns

So, Jeremy, how do you decide on what areas you're going to allocate your monies to? Yes, I think we probably do this

quite differently from many of the people who are on your podcast.

So given our market creation mandate, what we do is we start with the social issue.

We're looking for those areas where investment can be a significant part of the solution.

There are lots of places it can't, to be clear, but in the right place and at the right time, we see how investment can be transformational.

We're then looking for those areas that can bring in significant amounts of So we underwrite and price investments where others will be willing to invest over time.

So we are deploying capital for where we see opportunities.

We do that allocate across our portfolio.

So we size, if you like, much more on financial risk return so that our portfolio will deliver good financial outcomes across multiple scenarios for us.

So we're picking what to do by where we see where the greatest opportunities opportunities are and then we're sizing in our portfolio for our financial return and long-term sustainability.

And are these monies managed externally or do you manage them in-house yourselves?

So a little bit of both.

We'll invest direct where we are catalyzing new areas.

But in the majority of our portfolio and very much what we are aiming for over time is to work with other managers because ultimately we believe that they can bring in more capital.

A sort of key objective for us, I guess, is growing the market rather than being the

market.

So in essence, are you sort of a fund of asset managers? Effectively,

so that is about 80% by value, much less by number.

But certainly where we think about where we want to get to, which is seeding areas and ultimately scaling them by bringing in capital for others, then we think we do that much more effectively through working with leading managers, leading venture managers, leading property managers, leading lending managers, etc.

So what are the types of institutions that actually allocate money to you? I mean, who's actually investing with you?

So most of the capital we run is our own permanent capital, actually from our original shareholders.

We do also run a listed investment trust with Schroders, the Schroder BSC Social Impact Trust.

The investors in that are pension funds, family offices, foundations.

But the majority of investors who invest alongside in all of the different investments that we are are institutional investors.

They're seeking ultimately market rate returns for their objectives in different ways.