WHY IMPACT INVESTING

Impact Investing - A force for good

Capitalism has come under increasing scrutiny in recent years.  Boundaries have become blurred between governments, global bodies, financial institutions and social enterprises. The idea that a firm exists to primarily to maximise the welfare of its owners, the shareholders, is now outdated. 

Against this background, impact investing is reshaping the relationship between individual wealth and the public good, releasing the potential of private money to make a positive impact on society. 

The primary objective of these investments is to create sustainable change. Impact investments are found across the charitable sector, social enterprises and social businesses, as well as among mainstream listed ethical products. They are driving creative solutions that tackle social issues such as education, gender equality, economic development, health, human rights and poverty.

 

Why Impact Investing?

Doing good and making sound business decisions are not mutually exclusive. When correctly managed, impact investing offers a ‘win-win’ scenario, giving a social as well as a financial return, and so enabling charities, social enterprises and NGOs to innovate, grow and improve both their own sustainability and the lives of the beneficiaries with whom they work, and consequently, on society and public services at large.

Impact investors have an opportunity to pioneer a new form of responsible capitalism, generating a measurable impact on society and allowing for onward investment in causes that matter to and inspire them. Private client advisers and institutional asset managers are in the perfect position to broaden their relationship with their clients by offering advice on the impact investing market. By doing so, they can differentiate their offering and deepen their relationship with their clients.