Investing in and managing impact assets

Determining impact investment strategy 

• Impact Investing from Ideas to Practice: How to evaluate Impact Investing Fund Managers

  World Economic Forum Investors Industries

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  Reading time: 10 minutes

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  The report considers 4 factors that should be considered when evaluating an impact investing fund manager, recognising that focusing on their track record might not be practical given that the sector is still in its early stages. The report identifies and explains 4 key factors, providing asset owners and advisors with practical advice about what aspects of a fund manager’s organisation to consider in their evaluation. Under each key factor is a list of relevant key questions asset owners might consider.

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  What the reviewer found helpful:
  

  “The report provided interesting insight into how fund managers’ background, organisational structures and governance affect their investing style and decision-making processes.”

  Yinni Hu

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  Intermediate

  
  
  

• Investing with impact in the endowment: Why do it and how to get started

  Impact Investing Institute

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  Reading time: 90 minutes (20 minutes for section 6)

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  This is a lengthy and highly detailed practical guide for those managing charitable endowments to better understand how to invest with impact in a way that aligns with their mission and values. It outlines what is meant by impact investing, why foundations would benefit from this approach, useful products and tools for both public and private markets, and a set of actionable steps to kick-start the process of impact investing. Case studies are included in the appendix and peppered throughout for those who benefit from examples. Readers might want to first read the report: ‘Can Charities Invest their Endowment with Impact?’ to ease them in.

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  What the reviewer found helpful:
  

  “This guide breaks down impact investing in a really accessible way, and the tables on pages 21 and 37 visually simplify investment decision making for charities” Anna Martinovic

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  Specific section to read:
  All (especially section 6)

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  Intermediate

  ✔ Recommended

  
  
  

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Impact investment risk, return and portfolio effect 

• Risk, Return & Impact: Understanding Diversification and Performance Within an Impact Investing Portfolio

  Community Wealth

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  Reading time: 45 minutes

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  This fifteen-page brief focuses on how best to understand risk, return (financial, social and environmental) and impact. It begins by explaining basic concepts and building a picture of the impact investing landscape. Then addresses the question of “What is risk?” explaining the various subcategories and points relevant to impact assets. Return is then considered, focusing on what constitutes market-rate returns and the balance between doing good and doing well. The final third of the brief is dedicated to understanding impact and the new efficient frontier created when adding impact as a third dimension to the traditional two dimensions of risk and return.

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  What the reviewer found helpful:
  

  “I liked the questioning approach of the brief. It helped to engage my brain on the issue before delving into the answers put forward.”

  Rebecca Lagan

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  Intermediate

  
  
  

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Fiduciary duty and regulation 

There are no Intermediate resources for this topic

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