DOING WELL AND DOING GOOD

Where investors choose to invest has consequences. In the end, those consequences could be the difference between a vibrant or failed future. If capital is allocated more mindfully — i.e., more explicitly relative to its verifiable impact — it would greatly enhance human prospects for more inclusive, sustainable economic growth.

Image courtesy www.globalgoals.org

If mindful investing is combined with more mindful consumption, regulatory and tax policies that encourage better long-term decision-making, as well as global cooperation on matters of shared importance, the greatest centuries of human achievement lie ahead of us, not behind. In our enlightened future, optimists will have once again prevailed, and eternal virtues and principles will have been reaffirmed. Technological Transformation; Long-term Capital Gains; Wealth Tax; G-20; Bretton Woods; Enlightenment. 

 

Examples Of Public Equity Impact Strategies

Public Equity Impact Strategies have 7-year track records on average

  • Average fund returns have been -16% (1yr), +8.3% (3Y) and +8.0% (5yr) through April 2022

  • Average fund alpha over the measured time period has been about -80 bps per annum – meaning most impact funds have had concessional returns

  • Public Equity Impact managers pursue multiple objectives, ranging from sustainable agriculture, to improved education and social inclusion. Portfolio construction methodologies are usually proprietary.

  • Most Public Equity Impact Managers map their exposures and strategies back to the UN Sustainable Development Goals

  • Leading Public Equity Impact managers utilize exacting Key Performance Indicators and assist their portfolio companies in achieving tangible sustainability objectives

 
 

Examples Of Private Equity Impact Strategies

Private Equity Impact strategies have had an average +13.8% net IRR since inception, according to available data.

  • Several strategies – including Vox Capital, UBS Oncology, and Bain Capital Double Impact Funds – appear to have had exceptionally high returns.

  • Most Private Equity Impact Strategies target +17-25% gross IRRs, which would be non-concessional.

 

Examples Of Fixed Income Impact Strategies

Most Fixed Income Impact strategies are actively managed, not indexed. They range from specific climate and other thematic funds, to more standard “ESG” variants. Some include verifiable additionality impact reports,

  • Most active Fixed Income Impact managers used proprietary methodologies that are not terribly dissimilar to their other, non-impact methodologies.