In this episode, we delve into the world of socially responsible investing with a focus on Mbu Capital’s innovative Social Bond Fund. Hosted by Bill Holiday, this podcast series is brought to you by AIO Financial, a fee-only financial planning firm dedicated to helping you make informed investment decisions.

Highlights from the Episode:

  • Introduction: Bill kicks off the episode, sharing a candid reflection on his own distractions, the current political climate, and his experience binging “House of Cards.” He acknowledges the addictive nature of politics but also anticipates its eventual end.

  • Special Guest Interview: Bill introduces a special guest, Mohammed Iqbal, of Mbu Capital. Mohammed shares insights into the company’s unique Social Bond Fund, which is designed to create social impact while providing returns to investors.

  • The Mbu Capital Social Bond Fund: Mohammed details the key features of the Social Bond Fund. This fund offers a fixed annual return of 7%, with payouts every six months. Investors not only receive a 5% profit share but also have the opportunity to direct an additional 5% of profits toward a charity of their choice.

  • Investment Focus: Mbu Capital primarily focuses on real estate investments outside of London, UK, aimed at community regeneration, affordable housing, care homes, student accommodations, and service-to-office spaces.

  • Global Reach: The uniqueness of the Mbu Social Bond Fund lies in its global appeal. With a minimum investment of just one dollar, it opens its doors to investors worldwide. Mbu Capital aims to eliminate geographical and financial barriers to socially responsible investments.

  • Socially Responsible Real Estate: Mbu Capital’s investments revolve around real estate solutions that address social needs. This includes affordable housing, quality student housing, and the regeneration of underserved areas.

  • Risk Mitigation: The company emphasizes a stringent approach to risk mitigation. Due diligence, conservative leverage, no planning risk, and clear exit strategies are all part of their risk management approach.

  • Geographic Focus: While they currently focus on areas around London, they are open to expanding their reach in the UK.

  • Triple Bottom Line: Mbu Capital’s approach involves delivering a “triple bottom line” to investors. This includes fixed returns, profit participation, and the choice to support charitable causes that matter to the individual investor.

  • Global Charity Reach: Investors have the freedom to select charities, which can be global, and Mbu Capital ensures they are registered and vetted to receive donations.

  • Investment Duration: The Social Bond Fund has a fixed maturity of three years, offering both stability and return potential.

  • Early Days: The Social Bond Fund is in its early stages, with ongoing efforts to market it on a global scale. A pool of high-net-worth investors is helping facilitate opportunities while subscriptions grow.

  • Currency Flexibility: Investors can participate in dollars, euros, or sterling, reducing currency exchange risks.

  • The Team Behind Mbu Capital: Mohammed discusses the expertise of the team and partners at Mbu Capital. Their background in investment banking and real estate ensures a strong foundation for their projects.

  • Interest Payment Frequency: Investors receive interest payments semiannually (twice a year) from their investment.

  • Flexibility: Mbu Capital is committed to providing a simple, flexible, and accessible investment opportunity. There is no accredited investor threshold, and investments can be made by anyone.

  • Tax Considerations: The investments are paid out as gross income, and investors are responsible for declaring their income on their tax returns.

Wrapping it Up:

Mohammed emphasizes that Mbu Capital’s innovative approach aims to provide both social impact and financial returns. Their strategy focuses on filling social needs and managing risks effectively. Bill commends the opportunity for investors to not only grow their wealth but also support causes close to their hearts.

Stay tuned for future episodes of Fee-only Financial Planner Podcast, where we continue to explore socially responsible investments and their impact. Please consult the prospectus and your financial planner before making any investment decisions.

To learn more about the Mbu Capital Social Bond Fund, visit Mbu Capital’s official website or contact them via www.mbusocialbond.com. Feel free to reach out to Bill Holiday at bill@aiofinancial.com or call 520-325-0769 if you have any questions or require further assistance.