Impact investing, the practice of investing in companies dedicated to furthering a social or environmental goal, is gaining traction. Contrary to popular belief, investing for social good does not necessarily mean sacrificing returns. In fact, many of these vehicles offer current yield, stability and, perhaps, modest growth. These features have attracted institutional investors for years, and now impact investment products with mass appeal are hitting the retail market. While this World Economic Forum study – edited by WEF’s Abigail Noble, Marina Leytes and Ann Brady as well as former WEF editor Fabienne Stassen – does a good job of assessing impact investing from a variety of standpoints, the quality of the writing is at best uneven, and some of the articles come uncomfortably close to pitching a product or service. Given that 16 experts contributed to the report, such pitfalls might just come with the territory. Nonetheless, getAbstract recommends this compendium to individual and institutional investors, brokerage firms, financial advisers, and others interested in the growing market for impact investments.
In this summary, you will learn
- How institutional investors can incorporate impact investments in their portfolios,
- What type of impact investments are available,
- How retail investors can participate in these financial products, and
- How universities can foster and promote impact investing.
About the Authors
Abigail Noble is head of impact investment initiatives at the World Economic Forum, where Marina Leytes is project manager and Ann Brady is head of editing. Fabienne Stassen is a former chief editor at WEF.