Investing with Purpose: Unlocking the Economic Potential of Impact Investments

Overview

Investing in an organization or fund with the aim of generating social or environmental impact alongside a financial return is a concept that has been gaining wider appeal and attention in wealth management. Often known as impact investing, the concept has become an industry. The Global Impact Investing Network estimates impact investments totaled $60 billion in invested capital in 2015. In general, the targets of much of impact investing fall into three groupings: (1) creating social value through new products or services, (2) generating new employment opportunities for disadvantaged populations, and (3) investing in specific geographies. With an ability to generate returns that are comparable to other instruments, impact investing is becoming a viable option for many ultra-high-net-worth individuals.

Advisor Thinking