1 00:00:00,080 --> 00:00:03,480 Speaker 1: Hello Business Week listeners. As part of Sustainable Finance Week, 2 00:00:03,520 --> 00:00:06,560 Speaker 1: a series of events where one thousand industry leaders convene 3 00:00:06,600 --> 00:00:09,320 Speaker 1: in New York City to accelerate the main streaming of 4 00:00:09,400 --> 00:00:14,000 Speaker 1: sustainable finance, we're bringing you a special bonus episode this week, 5 00:00:14,040 --> 00:00:18,079 Speaker 1: Bloomberg TVs. Rami Inocencio sat down with Gene Case, CEO 6 00:00:18,120 --> 00:00:22,440 Speaker 1: of the Case Foundation. The philanthropist discussed financial and social returns, 7 00:00:22,680 --> 00:00:25,000 Speaker 1: the need to find companies that align with your values, 8 00:00:25,079 --> 00:00:29,160 Speaker 1: and the rise of impact investing in Asia. So let's 9 00:00:29,200 --> 00:00:32,440 Speaker 1: really hop into this. Responsible investing is the theme for 10 00:00:32,479 --> 00:00:35,080 Speaker 1: these two days, this whole entire week. When it comes 11 00:00:35,120 --> 00:00:37,840 Speaker 1: to the Case Foundation, what's a project that is proof 12 00:00:37,840 --> 00:00:40,320 Speaker 1: of concept? You say, hey, this works. Yeah. So we're 13 00:00:40,320 --> 00:00:43,800 Speaker 1: really focused on impact investing, those investments that provide both 14 00:00:43,800 --> 00:00:46,360 Speaker 1: a social and a financial return. And you know, when 15 00:00:46,360 --> 00:00:48,320 Speaker 1: we talked about that, people say, well, what do you mean. 16 00:00:48,640 --> 00:00:50,800 Speaker 1: There's a company most of us know that's pretty hot 17 00:00:50,840 --> 00:00:53,960 Speaker 1: these days, Warby Parker. Not only are they a hot 18 00:00:53,960 --> 00:00:56,480 Speaker 1: eyeglass brand and a hip company, I have a couple 19 00:00:56,480 --> 00:01:00,279 Speaker 1: of other classes. Okay, okay, but you probably know when 20 00:01:00,280 --> 00:01:03,400 Speaker 1: you buy a Warby Parker pair of glasses, something good happens. 21 00:01:03,440 --> 00:01:06,520 Speaker 1: They train entrepreneurs and the developing world that make glasses 22 00:01:06,560 --> 00:01:09,680 Speaker 1: available for low costs or in some cases free to communities, 23 00:01:09,680 --> 00:01:12,320 Speaker 1: and they've given away four million glasses as a result. 24 00:01:12,600 --> 00:01:15,120 Speaker 1: So great example of a company that's a hot brand, 25 00:01:15,520 --> 00:01:18,160 Speaker 1: hot for investors, you know, to jump in if they can, 26 00:01:18,520 --> 00:01:20,920 Speaker 1: and at the same time doing something really remarkable in 27 00:01:20,959 --> 00:01:23,560 Speaker 1: the world. Good stuff happening here as evidence in all 28 00:01:23,560 --> 00:01:25,399 Speaker 1: the vision areas of leaders that we've had here at 29 00:01:25,400 --> 00:01:29,440 Speaker 1: Bloomberg's global headquarters today. But there are challenges as well, 30 00:01:29,760 --> 00:01:32,440 Speaker 1: um through the lens of what you might have learned 31 00:01:32,640 --> 00:01:35,280 Speaker 1: in terms of those challengers or maybe failures. If you're 32 00:01:35,280 --> 00:01:38,160 Speaker 1: able to admit, what is something that investors should know 33 00:01:38,400 --> 00:01:42,199 Speaker 1: to say, Hey, it's not all up and up, sure, sure, well, 34 00:01:42,200 --> 00:01:44,280 Speaker 1: it's we like to say it's early days and impact 35 00:01:44,280 --> 00:01:48,120 Speaker 1: investing right, there's tremendous traction and momentum. In fact, the 36 00:01:48,200 --> 00:01:50,960 Speaker 1: amount of assets going into impact investing doubled in the 37 00:01:51,040 --> 00:01:54,720 Speaker 1: last year to two billion. But probably what investors need 38 00:01:54,800 --> 00:01:57,800 Speaker 1: to know is that the ecosystem is not complete yet. 39 00:01:58,000 --> 00:01:59,840 Speaker 1: There are still parts of it that are filling out. 40 00:02:00,080 --> 00:02:03,960 Speaker 1: What investors rely on for comfort and tools aren't necessarily 41 00:02:04,000 --> 00:02:07,400 Speaker 1: there and impact investing, but there is a growing climate 42 00:02:07,440 --> 00:02:12,240 Speaker 1: and ecosystem of expertise around impact investing. All the major banks, 43 00:02:12,480 --> 00:02:15,560 Speaker 1: world class investors have jumped in, so we're seeing very 44 00:02:15,680 --> 00:02:19,080 Speaker 1: very early momentum. All right, how are you positioning your 45 00:02:19,120 --> 00:02:22,200 Speaker 1: own portfolio too? Yeah, so of course we have a 46 00:02:22,240 --> 00:02:25,360 Speaker 1: number of different portfolios in in sort of our personal realm. 47 00:02:25,360 --> 00:02:27,520 Speaker 1: But for me, I have one that I made a 48 00:02:27,560 --> 00:02:29,720 Speaker 1: decision just a couple of years ago to take to 49 00:02:29,800 --> 00:02:33,320 Speaker 1: a hundred percent impact across all asset classes. And it's 50 00:02:33,320 --> 00:02:36,320 Speaker 1: been quite a quite a learning process, but it's also 51 00:02:36,400 --> 00:02:39,200 Speaker 1: been exciting. I've been able to see across st classes 52 00:02:39,400 --> 00:02:41,960 Speaker 1: there's actually really great deal deal flow that I've been 53 00:02:42,000 --> 00:02:43,799 Speaker 1: able to take a look at it. In many cases 54 00:02:43,880 --> 00:02:45,760 Speaker 1: jump in. So we're not sure how long it's going 55 00:02:45,840 --> 00:02:49,280 Speaker 1: to take before I'm fully a but certainly what I 56 00:02:49,320 --> 00:02:51,760 Speaker 1: am today is values aligned. And that's the other thing 57 00:02:51,800 --> 00:02:54,440 Speaker 1: I'd say to your investors is long before you jump 58 00:02:54,440 --> 00:02:58,400 Speaker 1: into pure impact investing, know what's in your portfolio. Make 59 00:02:58,440 --> 00:03:00,560 Speaker 1: sure that's it's in a low I'm not with your 60 00:03:00,600 --> 00:03:04,079 Speaker 1: values because that is nothing anyone has to compromise today, 61 00:03:04,440 --> 00:03:07,360 Speaker 1: and we have to bust the myth that for things 62 00:03:07,360 --> 00:03:10,800 Speaker 1: to provide social good you would have to compromise on returns. 63 00:03:11,000 --> 00:03:12,880 Speaker 1: We have lots of research out there in the market 64 00:03:12,880 --> 00:03:15,320 Speaker 1: the demonstrates that's not the case, right, you don't have 65 00:03:15,400 --> 00:03:18,440 Speaker 1: to be concessionary. There's a lot of proof of concept 66 00:03:18,520 --> 00:03:20,799 Speaker 1: here um for investors who are watching and they're saying, 67 00:03:21,400 --> 00:03:24,079 Speaker 1: this is a new topic for me, responsible investing and 68 00:03:24,240 --> 00:03:26,480 Speaker 1: how they align in terms of values. What are some 69 00:03:26,520 --> 00:03:28,800 Speaker 1: of the values that people you see are aligning themselves 70 00:03:28,800 --> 00:03:31,079 Speaker 1: with right now? Sure? Well, they really range across the 71 00:03:31,200 --> 00:03:33,800 Speaker 1: board as many different kinds of investors or different strends 72 00:03:33,800 --> 00:03:35,840 Speaker 1: of values. So what we did at the Case Foundation 73 00:03:36,200 --> 00:03:38,000 Speaker 1: is we put out what's called a Short Guide to 74 00:03:38,000 --> 00:03:40,400 Speaker 1: Impact Investing, and you can literally just google that and 75 00:03:40,440 --> 00:03:42,520 Speaker 1: you'll find it or come to the Case Foundation site. 76 00:03:42,680 --> 00:03:45,280 Speaker 1: But it's a great primer for someone who's heard about 77 00:03:45,320 --> 00:03:47,520 Speaker 1: it but maybe wants to go a little deeper and 78 00:03:47,560 --> 00:03:49,880 Speaker 1: figure out how they begin to frame what an impact 79 00:03:49,880 --> 00:03:53,760 Speaker 1: investing strategy might look like for them looking over the 80 00:03:53,760 --> 00:03:55,560 Speaker 1: past year, year and a half. I know you were 81 00:03:55,560 --> 00:03:58,000 Speaker 1: in Soul, South Korea last year for this Pan Asian 82 00:03:58,040 --> 00:04:01,600 Speaker 1: conference on folks who wanted to get into responsible investing. 83 00:04:02,000 --> 00:04:04,120 Speaker 1: Fast forward to what you just mentioned. You were in 84 00:04:04,200 --> 00:04:09,080 Speaker 1: Paris last week. The Asia theme still pervades. Definitely. We're 85 00:04:09,200 --> 00:04:12,480 Speaker 1: very bullish on where Asia is with impact investing. We've 86 00:04:12,520 --> 00:04:15,960 Speaker 1: just seen a real growth and interest and passion around 87 00:04:15,960 --> 00:04:19,280 Speaker 1: the topic, so people are starting to jump in. You know, 88 00:04:19,320 --> 00:04:23,839 Speaker 1: it's interesting. We had entrepreneurs investors from really the entire 89 00:04:23,880 --> 00:04:26,400 Speaker 1: Asian region with US and SOUL last year. But then 90 00:04:26,440 --> 00:04:28,880 Speaker 1: in Paris, what I was so delighted to see was 91 00:04:28,920 --> 00:04:32,200 Speaker 1: a number of high net worth families and individuals who 92 00:04:32,279 --> 00:04:35,400 Speaker 1: are just now getting pretty excited, excited and getting ready 93 00:04:35,440 --> 00:04:40,120 Speaker 1: to deploy their assets and impact investing countries. Individuals or 94 00:04:40,120 --> 00:04:42,440 Speaker 1: companies if you can speak on them that stand out 95 00:04:42,480 --> 00:04:45,080 Speaker 1: from a sure well Hong Kong, as you might imagine. 96 00:04:45,279 --> 00:04:47,919 Speaker 1: We watched in Japan, of course, their pension fund commit 97 00:04:48,040 --> 00:04:52,120 Speaker 1: one trillion yen to sustainable investing. So many people in 98 00:04:52,200 --> 00:04:54,800 Speaker 1: Japan are watching that. Um. But you know, I'll give 99 00:04:54,800 --> 00:04:58,400 Speaker 1: you an example, and there was a Vietnamese entrepreneur, founder 100 00:04:58,400 --> 00:05:00,640 Speaker 1: of a gaming company who was with US in Asia, 101 00:05:01,160 --> 00:05:05,280 Speaker 1: and after he exited his company, he called and said, look, 102 00:05:05,320 --> 00:05:07,440 Speaker 1: I really want to deploy this capital in the next 103 00:05:07,440 --> 00:05:10,120 Speaker 1: stage in a real meaningful and impactful way. So he's 104 00:05:10,200 --> 00:05:13,960 Speaker 1: looking at impact opportunities as a young entrepreneur. Alright, looking 105 00:05:13,960 --> 00:05:17,600 Speaker 1: ahead to tomorrow, the theme is w m d S, 106 00:05:17,640 --> 00:05:22,680 Speaker 1: but not weapons of mass instruction, Women's women, millennials and diversity, 107 00:05:22,720 --> 00:05:24,840 Speaker 1: the good kind of w m d S. Here, Um, 108 00:05:24,920 --> 00:05:28,080 Speaker 1: what is the theme that you think should be pushed 109 00:05:28,120 --> 00:05:31,159 Speaker 1: ahead in terms of where money, we're responsible investment funds 110 00:05:31,160 --> 00:05:33,360 Speaker 1: should be going here. Sure? Well, I think there's an 111 00:05:33,360 --> 00:05:36,880 Speaker 1: economic comparative and what I would call an innovation imperative 112 00:05:37,080 --> 00:05:39,400 Speaker 1: to focus on these segments that have been left on 113 00:05:39,400 --> 00:05:43,080 Speaker 1: the sidelines. We have great founders, great ideas out there 114 00:05:43,120 --> 00:05:46,840 Speaker 1: among women, people of color, people from different regions. We 115 00:05:46,880 --> 00:05:49,320 Speaker 1: need to bring them on the field, bringing their innovative 116 00:05:49,320 --> 00:05:51,920 Speaker 1: ideas and companies forward. And we need to back these folks. 117 00:05:52,320 --> 00:05:55,560 Speaker 1: Last year in the United States, venture capital went to 118 00:05:55,680 --> 00:05:59,680 Speaker 1: men only ten percent to women went to just three 119 00:05:59,720 --> 00:06:02,600 Speaker 1: place is in the United States. When you expand that globally, 120 00:06:02,640 --> 00:06:05,359 Speaker 1: it's even more dramatic. So it's really time to have 121 00:06:05,440 --> 00:06:07,159 Speaker 1: all the players on the field and all of us 122 00:06:07,279 --> 00:06:10,080 Speaker 1: championing these new great ideas. And I think that segues 123 00:06:10,080 --> 00:06:12,400 Speaker 1: into my last question for you. Your new book coming 124 00:06:12,440 --> 00:06:15,840 Speaker 1: out I said, to be published in January. Be fearless. 125 00:06:15,880 --> 00:06:18,120 Speaker 1: I know there are five themes. You can only talk 126 00:06:18,160 --> 00:06:21,200 Speaker 1: about one. What's your favorite here? Be bold, make a 127 00:06:21,240 --> 00:06:23,600 Speaker 1: big bet, be out there and believe in the art 128 00:06:23,640 --> 00:06:26,400 Speaker 1: of the possible and take something that you passionately believe 129 00:06:26,400 --> 00:06:29,360 Speaker 1: in Ford And so for investors, I would say, get engaged, 130 00:06:29,480 --> 00:06:32,159 Speaker 1: learn about impact investing. Maybe that's your next big bet.