[MUSIC] [FOREIGN] I'm Paul Herman of HIP Investor. HIP is Human Impact plus Profits. HIP Investor is a investment company where we rate investments on their sustainability and their impact and we connect it to financial risk and return. In other words, we look at future risk and return and what the drivers of value are for companies, for governments, and non-profits. HIP rates more than 4,500 companies worldwide, covering up 80% of global equity value. And we also rate 200 sovereign governments, and more than 1,000 government and non-profit entities that issue bonds. I personally have visited 51 countries around the world and in my visits around the world, there are many human, social and environmental problems to solve. To solve those problems takes capital and capital can come in many forms. It can come in the form of equity capital from investors. Bond capital, through loans, it can come through non-profit grants, as well as government spending. So in solving human social and environmental problems or solving for impact through investing, many times people who have high government intervention sometimes with a high tax rate may think that government is going to solve those problems. Investors can help government solve those problems through social ventures and social entrepreneurship or environmental entrepreneurship. So what we have found that investors can use equity and loans as well as program related investing through foundations to loan to ventures, companies, and non-profits to be paid back. In Asia, this happens mainly through investing. Usually the investing happens by and into family companies and multinationals. In Brazil, the individuals favor the corporate giving over the individual giving. So non-profit financings usually come through corporations like netora, rather than through individuals. In the US and in the UK, you are now seeing the concept of social impact bonds. And social impact bonds play the role of government to solve a problem that people expect a government to solve. Let's say healthcare or education, or prisons. And a combination of investors and foundations finance those based on the outcome. In institutional investing, Europe is a leader, the endowments and pensions in France, the Netherlands, Germany and Scandinavia, as well as Switzerland tend to allocate their institutional money towards investments that have more sustainability. So there's a wide variety around the world, and they're a mix of financial instruments that can both deliver good, deliver impact. And, have the potential to make money in that way. One more example would be in Bangladesh where there is micro finance. Micro finance loans, which are small loans to entrepreneurs, typically women, generally pay back at a 95, 98, 99% rate. And so those tend to be low risk and attractive return when put together into a financial instrument. So in our experience at HIP investor, investing is based on trust. So the essential element for any investor seeking impact is does this entrepreneur exude trust. Are they honest? Are they authentic? And are they truly trying to solve the problem? And you can see this today in many technology companies or health care companies. The main goal is to create a positive benefit for the customer or beneficiary and because there is a strong financial model, that can result. When the finance comes first before the impact, you don't always get a positive impact. In fact, you sometimes get an extractive business model. So investors are really looking for entrepreneurs who are authentically solving a human, social, or environmental problem. That have had experience in it in some way. Either they've come from that customer group. Or they've grown up in that geography, and they've experienced the problem first hand. Investors also like technical expertise. So an entrepreneur that mixes scientific, technical, or agricultural expertise with business sense, and an ability to communicate honestly, makes for a great investee for an investor. In our experience at HIP, the best investments build impact directly into the model, so that as you grow the impact, and as the entrepreneur measures that impact in micro finance, in education, in health care, in human rights, the natural result is that financial success will follow. The biggest challenges for investors seeking impact over the next ten years are really how many opportunities can they pursue across all asset classes in their portfolio. So across stocks and bonds, public and private opportunities, hedge funds and real estate as well as where you park your cash in a bank. So today, there are some opportunities available but there can be many more. So when banks and financial institutions and investment banks are competing based on impact, who has the more energy efficient stock? Who has the higher social impact bond? Where does my cash sitting in a bank do the most good for the community? That will be an achievement of the vision. Because financial industry typically has fast innovation, we can get there in five years. But we will only go as fast as you vote with your money. So each investor needs to tell their bank, investment adviser, fund manager, retirement plan, you want more impact in your portfolio. And then you need to be prepared to vote with your money and move your money to someone who will deliver that impact. So that's the biggest challenge. The biggest challenge is you and what you will do. So my challenge to you is when will you move your money for higher impact.