Xigi.net, an Internet-based platform that tracks so-called “blended value investing” – investments that create economic, social, and environmental value – has just launched a new Social Capital Index, which it hopes will provide a reliable and comprehensive bank of information to investors and entrepreneurs about social-capital investment instruments and transactions.
The index, the latest offering by the three-year-old Web site, tracks investments infused with such social concepts as fair trade, digital inclusion, clean technology, microfinance, and health, education, and workforce development. It consists of three components: an asset class fan, a DealSpace, and a fund matrix.
The asset class fan is a graphic representation of the different assets used in blended-value investing, arranged by risk, and ranging from debt to equity to grants. The span of asset classes includes deposit accounts as the most conservative, international direct loans as moderate, and strategic grants as the most aggressive.
The DealSpace is a listing of about 30 actual equity, debt, grant, and mixed investments that are being followed by Xigi. The amount, date, type, length, and impact of each investment are described. For instance, TIAA-CREF’s September 2006 equity investment of USD 43 million in ProCredit Holding AG (the world’s largest integrated microfinance holding company) is listed under the Money Out (Equity) heading.
The fund matrix gives details on seven investment funds tracked by Xigi, outlining fund type, size, focus, and terms. One such fund is the OASIS Fund, a venture capital product that includes debt and equity; it targets a total of USD 25 million for social-business investments in the developing world. The minimum initial investment is USD 250,000.
In its current state, the index seems most limited by its scope, or lack thereof. Because it only covers a handful of investments in a growing field, it likely will not be of immediate use to its audience. It is clear, though, that Xigi’s intention is for the new index to hit a critical mass, a point at which it can come to be viewed as a central database of information for all blended-value investors, akin to the MIX Market‘s mission for microfinance. Right now, index information is only available in downloadable PDF format and is updated monthly. In the future, Xigi sees a searchable database that can be updated in real time.
By Stephen Son
Additional Resources:
Xigi.net: “Social Capital Index Launches”; Asset Class Fan; DealSpace; Fund Matrix
BlendedValue.org: Home Page
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