11 Jun Why become an Impact Investor?
Despite the huge cloud caused by COVID-19 on global financial markets, there are some silver linings. A pattern has emerged demonstrating the resilience of investments that not only take into account environmental, social and governance (ESG) factors, but also unleash the power of capital to address the world’s most pressing challenges; a form of investing known as Impact Investing.
These impact investments are executed with the intention of generating a measurable beneficial social or environmental impact, alongside a financial return. And these investments have typically fared well during crises.
At Genus, we expect to see an increase in socially-minded investors selecting an impact-first strategy in the ‘new normal’ world, post COVID-19. That’s why we’ve recently announced the introduction of a new standardized Net Impact Score across all our impact funds to better inform socially-minded investors about the impact of each fund.
Learn how to calculate your Net Impact Score
The scoring system captures the ‘gray areas’ of Impact Assessment where the both harmful and beneficial nature of investments within the portfolio are calculated. If an investor is striving to make an impact in climate action, they may believe that a few investments in renewable energy will create a net positive impact. However, investors need to measure their entire portfolio to account for investments that detract from this goal. The unified scoring system will therefore enable investors to better align their investments with their values through increased transparency of the holistic impact of their portfolio.
If you would like to find out more about Impact Investing or would like further details on our new Net Impact scoring system, get in touch.
DISCLAIMER – Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. The contents are not intended to be construed as the provision of investment, legal, accounting, tax or other professional advice or recommendations of any kind.
* Benchmark MSCI World as the benchmark. It is about 50%+ US and 3% Canada