Scan of the Community Investment Sector in Canada Coro Strandberg Strandberg Consulting Brenda Plant Brenda Plant Consulting September 2004

Table of Contents

EXECUTIVE SUMMARY

ACRONYMS

1. INTRODUCTION

2. LITERATURE REVIEW: SUMMARY

2.1 Community Investing
2.2 Sustainable Venture Capital Investing
2.3 Economically Targeted Investing
2.4 Social Impact Metrics

3. DESCRIPTION AND ANALYSIS OF THE CANADIAN CI SECTOR

3.1 The Canadian CI Sector
3.2 Canadian CI Examples
3.2.1 Ecotrust Canada
3.2.2 Community Futures Development Association of B.C. (CFDABC)
3.2.3 Community Economic Development Investment Funds (CEDIF) Programs
3.3 CI Impacts
3.4 Economically Targeted Investing in Canada
3.5 ETI Examples
3.5.1 Concert Properties
3.5.2 Fondaction
3.6 Sustainable Venture Capital
3.6.1 SOCARIAQ

4. DESCRIPTION OF THE U.S. CI SECTOR

4.1 The U.S. CI Sector
4.1.1 ShoreBank and Shorebank Pacific
4.1.2 Community Reinvestment Act (CRA) Qualified Investment Fund
4.1.3 Portfolio 21
4.2 Economically Targeted Investing in the U.S.
4.2.1 California Public Employees’ Retirement System (CalPERS)
4.2.2 United Methodist Church General Board of Pensions and Health Benefits (General Board)
4.3 Sustainable Venture Capital in the U.S.
4.3.1 Pacific Community Ventures
4.4 Analysis and Implications for the Canadian CI Industry

5. INVESTMENT ALLOCATION ISSUES

5.1 Fiduciary Issues
5.2 Capital Allocation Issues

6. BARRIERS AND OPPORTUNITIES IN GROWING THE CI SECTOR IN CANADA

6.1 CI Barriers
6.2 ETI Barriers
6.3 SVC Investment Barriers
6.4 CI Opportunities

7. CONCLUSION

REFERENCES

APPENDIX A—LITERATURE REVIEW

i. Community Investing
ii. Sustainable Venture Capital Investing
iii. Economically Targeted Investing
iv. Social Impact Metrics

APPENDIX B—SENSITIVITY ANALYSIS

APPENDIX C—FUND MANAGER INTERVIEWEES

GLOSSARY OF TERMS