I N S I D E T H I S

I S S U E :

Mustard Seed 2

Green Pastures 2

Stockport Hydro 2

The Cochabamba

Project takes Credit

3

The Cochabamba

Project Share Offer

3

The Cochabamba

Project Loan Stock

3

HAFTrust and The

CCBS.

4

spondency and renewed

market uncertainties,

fuelled by the Japanese

earthquake and resulting

nuclear threat together

with rising fuel prices and

continuing unrest in

Libya , the industrial and

provident society model is

growing into a widely

respected model for so-

cially focused investment.

We hope you will be in-

spired by one or more of

them in this issue of

Money Talks.

It is now two years since

Ethical Investments re-

nounced its authorisation

with the Financial Ser-

vices Authority in order to

concentrate on promoting

alternatives to market-

listed securities.

In that time we have seen

a change of government

and the introduction of

Mr Cameron’s grand plan

for the “Big Society”.

On the positive side it is

clear that there is a huge

amount of willing support

for the principle of com-

munities helping and

organizing themselves.

The main criticisms how-

ever are that, with the

best will in the world,

ordinary people simply do

not have the time or skills

to turn aspirations into

reality.

Even more importantly

they need capital.

The so called “Big Society

Bank” will have a mere

£300 million in its first

year—a lamentably inade-

quate amount to tackle

the huge tasks envis-

aged.

We have also seen that

the main banks, whom

we all bailed out or at

least bolstered as the

credit crunch unfolded,

seem to prefer to resume

paying huge bonuses

rather than helping to

stimulate the economy by

actually lending money to

cash starved enterprises,

let alone those with a

clear social agenda.

The good news however

is that amidst the current

climate of doom and de-

The Cochabamba Project

was established by Ethical

Investments on 9th March

2009 as a pioneering soci-

ety—the first to separate

the community of inves-

tors from the community

to benefit from investment

and the first to support

community based forestry.

As at 31st December it

had raised over £1.2 mil-

lion which has been in-

vested to support a unique

programme combatting

deforestation caused by

slash and burn farming

methods across the west-

ern fringe of the Amazon

basin. The programme

known locally as ArBolivia

is working with almost

1000 farmers covering

smallholders totalling

roughly 35,00 hectares

with 1400 hectares of

new, predominantly native

trees. See over for details

of its current share and

loan stock offers.

B I G S O C I E T Y ? - D O N ’ T B A N K O N I T ! S P E C I A L

P O I N T S O F

I N T E R E S T :

The “Big Society”

needs investors.

The Cochabamba

Project 2 years on.

Social Housing of-

fers lower risk op-

portunities for so-

cial investors.

Last chance to save

20% tax with Stock-

port Hydro.

Coming soon—The

Climate Connected

Benefit Society.

T H E C O C H A B A M B A P R O J E C T — £ 1 M & C O U N T I N G

E T H I C A L I N V E S T M E N T S

MONEY TALKS March 2011 Volume 5, Issue 1

David Cameron’s “big idea”

Mustard Seed Property

Ltd was established as a

community benefit soci-

ety in 2007

The Society invests in

residential property in

Cornwall and the Isles of

Scilly for use as sup-

ported accommodation

for vulnerable adults. It is

intended that capital

raised by this share offer

is invested in further resi-

dential property or prop-

erty development in Corn-

wall and the Isles of

Scilly, for the purpose of

providing supported ac-

commodation for vulner-

able adults, and in par-

ticular, those who need a

level of domiciliary care.

In 2007 the Society pur-

chased a bed and break-

fast property in Helston

for conversion to prem-

ises providing supported

living accommodation for

up to 5 individuals with

learning disabilities.

After three years of suc-

cessful trading the soci-

ety is now seeking addi-

tional capital to improve

and extend the property

to provide accommoda-

tion for a further 3 indi-

viduals.

In addition, if sufficient

funds are raise the soci-

ety will seek to expand its

property portfolio and

hence its provision for

more vulnerable adults in

the local community.

The society expects to

pay annual interest in the

range of 2—5% per an-

num.

in order to maximise the

number of community

shareholders and mini-

mise any bank loan re-

payments, we have de-

cided to keep the share

offer open til the end of

March”.

Specifically set up for the

purpose of generating

hydro electricity, Stock-

port Hydro Ltd plans to

install a 54kW plant

which will generate ap-

Directors of Stockport

Hydro are increasingly

confident that the pro-

posed community-owned

hydro electric scheme at

Otterspool Weir in Marple

will go ahead.

“In addition to the final

fundraising effort, where

we’ve raised over £100K,

we’re also waiting for

confirmation of additional

funding and a loan from

other sources. However,

proximately 200,000

kWh per year, enough

electricity for around 50

houses. It will save 90

tonnes of C02 per year or

3,500 tonnes over its

estimated 40 year life-

time.

Shares cost £1 each with

a minimum shareholding

of £250 and a maximum

of £20K.

M U S T A R D S E E D P R O P E R T Y

S T O C K P O R T H Y D R O – N O T M A D E I N J A P A N !

Green Pastures has

housed over 1000

People in the past 11

years.

At present Green pas-

tures has over 370 ten-

ants through 26 partners

with a business plan to

grow to 1,000 housing

units in 5 yrs and a

dream to eradicate home-

lessness in the UK. It

works with partner organi-

sations who need help to

house the homeless in

their area. Each partner

agrees to house and care

for them in properties

identified by the partner,

and purchased by Green

Pastures. They also pro-

vide pastoral care to their

tenants, administer the

project and maintain the

property.

Investors may select a

term of one, two or three

years but are encouraged

to renew their investment

on maturity in order to

keep the capital “in the

system”.

G R E E N P A S T U R E S H O U S I N G

Green Pastures is a Chris-

tian ministry with a spe-

cific aim to provide

homes for the homeless

and those in most

need. Its hope is that

“with the church acting as

one we can end home-

lessness”.

Individuals and organisa-

tions can invest in Green

Pastures' Community

Benefit Society by pur-

chasing loan stock. Loan

stock applicants select an

interest rate of between 1

and 5%.

Page 2 M O N E Y T A L K S

The property in

Helston

“with the church

acting as one

we can end

homelessness”.

The society has revised

its prospectus for Spring

2011 following a number

of recent developments.

ArBolivia was one of the

very first forestry projects

in the world to achieve

accreditation as a “Clean

Development Mecha-

nism” by the UNFCCC.

This meant that it could

sell certified carbon cred-

its to the national govern-

ments of the 38 countries

which signed up to the

Kyoto protocol.

However, following the

failure of climate talks in

Copenhagen in December

2009 Bolivia withdrew its

support for CDM, thus

removing the possibility

to sell any further carbon

credits in the compulsory

market.

We have therefore had to

seek alternative accredi-

tation for these credits as

“VERs” (verified emis-

sions reductions) in order

to sell them instead in

the voluntary market.

Based on the require-

ments of a pre-identified

buyer we have sought

accreditation using the

“Plan Vivo” standard .The

validation visit was com-

pleted on 4th March with

all aspects being marked

as compliant. We are

therefore expecting to

receive accreditation

imminently.

The society now owns the

rights to these credits

and will therefore benefit

from a second, much

more immediate revenue

stream in addition to its

future timber income.

It has also been designed

to provide an alternative

for those investors who

would prefer to receive a

fixed, albeit lower, rate of

interest rather than it

being rolled up.

Investors may select a

term from 5 to 25 years

and may also elect to

reduce the interest they

receive in order to benefit

the society.

In addition to the ordinary

share offer the society

has recently also

launched its first loan

stock offer.

This has been done partly

in order to facilitate the

refinancing of a loan from

a charitable trust, which

(understandably given the

problems highlighted in

our lead article) has

asked for repayment.

Loan stockholders will not

be able to vote but there

is no restriction on the

amount invested.

There will only be a lim-

ited amount of stock

available which will be

allocated on a “first come

first served” basis.

For further details about

the society please visit

www.cochabamba.coop,

T H E C O C H A B A M B A P R O J E C T T A K E S C R E D I T ( S )

T H E C O C H A B A M B A P R O J E C T - L O A N S T O C K

versity, for the purchase

of at least 50,000 tones

of VERs. It is also in ad-

vances negotiations with

another party for the sale

of a further 30—50,000

tonnes a year for the next

3—5 years.

The society is therefore

seeking additional capital

firstly as a back up

should these deals not

come to fruition in the

next few months and

secondly to lay the foun-

dations for future expan-

sion of the project.

The society has declared

its first annual interest

payment at 7.5%, which it

expects to be ratified at

the AGM on 28th April.

The minimum investment

remains £1,000 but it is

now possible to pay by

monthly installments on

an ongoing basis.

T H E C O C H A B A M B A P R O J E C T — N E W S H A R E O F F E R

With the above changes

the society has revised its

financial projections and

is now seeking to sell its

carbon credits in order to

reduce the need for addi-

tional investment capital

and also to bring forward

the date at which it hopes

to break even.

The society has a letter of

intent from HAFTrust, a

not for profit company

linked to Greenwich Uni-

Page 3 V O L U M E 5 , I S S U E 1

A typical commune with the Amboro

national Park behind

Hear Emma’s story available on the

society’s website

“The society has

declared its first

annual interest

payment at 7.5%,

which it expects

to be ratified at

the AGM on 28th

April”

100 Whirlowdale Road

Sheffield

S7 2NJ

Phone:

0114 2368 168

E-mail:

dav@ethicalinvestments.co.uk

Ethical Investments was established in 1996 as an

authorised firm of Independent Financial Advisers.

In 2009 it withdrew from this market in order to

concentrate on promoting investment opportuni-

ties that provided working capital for projects with

clear social and environmental impacts. Its core

product is the industrial and provident society for

the benefit of the community.

These co-operative societies must be registered

with the Financial Services Authority but are ex-

empt from the normal restrictions on financial pro-

motions when offering withdrawable shares and/or

loan stock to the public. For further details of all

offers please contact us as shown to the left

E T H I C A L

I N V E S T M E N T S

and international brands,

including PES (Payments

for Ecosystem Services)

and carbon credits.

HAFTrust has signed a

letter of intent to pur-

chase significant volumes

of credits from The

Cochabamba Project.

In order to expand its

remit, HAFTrust intends to

create a new fund, sup-

ported by a syndicate

which includes a number

of London based universi-

ties.

This fund will be used to

kick start its own portfolio

of carbon mitigation pro-

jects in developing coun-

tries, with strict criteria

for social and biodiversity

benefits.

Ethical Investments has

been working for the past

two years with HAFTrust,

a not for profit company

linked to Greenwich Uni-

versity.

H.A.F. stands for “Hadlow

Agro-Forestry” and re-

flects its links with Had-

low College, the agricul-

tural college for Kent.

HAFTrust provides intern-

ships, work placements

and research opportuni-

ties for graduates in the

areas of software devel-

opment, sustainability,

carbon project develop-

ment and business strat-

egy.

HAFTrust funds its work

by providing commercial

services to well-known UK

As an additional funding

stream Ethical Invest-

ments has been helping

HAFTrust to set up a new

Industrial and provident

society with a view to

capitalizing on the sup-

port of the universities’

own staff and alumini.

A new society called The

Carbon Connected Bene-

fit Society is now being

registered with the FSA. A

limited initial share offer

is being proposed within

the next few weeks and

this will be followed by a

public loan stock offer.

Please let us know if you

would like an invitation

to the launch event at

Greenwich University or a

copy of the new offer.

H A F T R U S T & T H E C L I M A T E C O N N E C T E D

B E N E F I T S O C I E T Y

We’re on the web!

www.ethicalinvestments.co.uk

HAFTrust is hoping to create

a new fund to support for-

estry projects in developing

countries