The NAB Foundation, an independent charity established by the National Australia Bank (ASX: NAB), has launched a $50 million Impact Investment Fund that aims to support affordable housing projects in a new initiative to help tackle the housing crisis in Australia.
The foundation has already allocated $25 million of its total capital into the fund, with $10 million already invested, and plans to top this up to $50 million by October next year.
The Impact Investment Fund, which will be managed by JBWere, is designed to increase NAB Foundation’s positive social and environmental impact as part of its $170 million total corpus – the funds the charity has invested.
The fund was launched today by NAB group executive and JBWere chair Cathryn Carver in an address on sustainable investment solutions for Australia’s housing crisis at the Asia Pacific Impact Investing Summit in Sydney.
The Impact Investment Fund is specifically looking to invest in opportunities that “intentionally generate a positive and measurable social and environmental impact alongside appropriate risk-adjusted financial returns”.
The NAB Foundation says the fund will provide investment capital to support and scale impactful projects and organisations that align with NAB's sustainability priorities. These include Indigenous economic advancement, social and affordable housing, and climate transition.
Carver says the new fund aims to unlock more opportunities to address societal challenges and support sustainable development by leveraging the capital of the NAB Foundation.
“The NAB Foundation is already supporting crucial community initiatives by providing up to $6 million in philanthropic grants and partnerships each year,” she says.
“Directing capital to aligned impact investments opens up new ways for the foundation to create positive and lasting change.”
As investment manager, JBWere will work alongside a specialist investment committee chaired by Ben Smith, head of impact investing at Paul Ramsay Foundation.
JBWere CEO Michael Saadie says impact investing is a growing area of focus for those looking to invest effectively for performance and purpose.
“JBWere is the leading advisory firm in Australia, with more than $64 billion under advice,” he says.
“The NAB Foundation is one of hundreds of purpose-driven organisations and families that we have the privilege of partnering with.
“Our governance and impact investment experts are excited to work with NAB Foundation and like-minded clients to help them develop and execute their impact investing ambitions.”
NAB Foundation says the “deeply experienced and diverse committee” will work closely with JBWere and other specialists to identify and conduct due diligence on impact investment options, providing the governance framework to guide investment decisions and further the growth of this critical market in Australia.
“The committee is excited by the potential of the fund, especially with NAB Foundation’s willingness to invest across the risk/return spectrum to generate high impact return,” says Smith.
The NAB Foundation was established in 2016 and while it is a charity operating independently of NAB Group, it draws on skills, expertise and resources from across the banking group.
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