Meet global challenges.
The world’s most pressing problems – climate change, extreme poverty, limited access to healthcare and education – cannot be solved through government grants alone. Just to meet the Sustainable Development Goals (SDGs) in developing countries requires an estimated annual $2.5 trillion. Private capital is needed to fill that gap.
Stabilise your portfolio.
Impact investing can be a useful complement to other investments in your portfolio. A new study by Morgan Stanley, which surveyed over 10,000 equity mutual funds over the past seven years, finds that social impact funds on average had lower volatility than comparable non-impact funds.
Achieve market-rate returns.
It has always been possible to “do good while doing well,” but this is even truer today. Global challenges are global opportunities. Those who provide solutions to today’s problems will be the financial winners of tomorrow. Data from the Global Impact Investing Network shows that the majority of the estimated $15 billion impact investment market produces market rate returns.
Put your capital to work
Investments in social, health and environmental causes provide an efficient way to meet your individual or your company’s social responsibility goals with a much higher ROI than donations or grants, which simply hand out money. Instead, smart impact funds allow investors to help sustainably grow the recipients – whether that’s a small-holder farmer, a health startup, or a company solving energy challenges – and build an inclusive circle of progress.
Align values with investments
There’s no reason why investors can’t pursue a triple bottom line of “people, planet, profit.” With impact investing, values and profit no longer have to be in competition. This type of investing allows you to signal your commitment as a responsible investor without giving up returns.
Meet client demand.
Studies show that client demand is one of the leading reasons why investment firms are increasingly offering impact investments. In today’s trust-based, socially-conscious investing climate, firms must offer impact investment services to stay competitive.
Connect with big thinkers.
Impact investing brings together people from diverse backgrounds who are united by a belief in the financial and social imperative of impact investments.
Change the culture of investing.
Impact investing is on the rise; the majority of funds dedicated solely to investing in social change were created in the past decade. Today’s investors are in a position to take advantage of this energy and to further bring impact investing into the mainstream. If investors commit our leadership ability, entrepreneurial acumen and resources to a revision of the status quo, we can help create a new normal around impact investing.
Be a global citizen
As investors, it is often easy to become overly focused on financial bottom lines and the sectors that dominate our portfolios. Investing in social or environmental opportunities broadens our horizons and gives us an opportunity to drive positive change.
Heal the world
Our futures are interdependent. As investors and social entrepreneurs, we have a moral imperative to act collaboratively to transform our economies and redefine our notions of value. Impact investing allows us to be a part of social change that makes a measurable difference for our planet and future generations