Impact investing on the cusp of mainstream wealth management

Monday, June 30, 2014

The news releases arrived in noteworthy succession throughout 2013. Morgan Stanley,UBS AG, The Goldman Sachs Group Inc., and JPMorgan Chase & Co. — some of the biggest names in the financial services industry — announced plans to establish or augment their activities around impact investing. Such investments are made with the intention of generating measurable social and environmental impact alongside appropriate financial returns.

Each firm signaled a different approach and each used diverse language to describe its efforts. But the gist was the same: The significance of investment directed at achieving impact is growing, as is the willingness to engage in it beyond the traditional confines of corporate philanthropy.

Advisers who don’t believe impact investing will play a meaningful role in their own client strategies aren’t seeing the writing on the wall. Investing for meaningful impact will become part of mainstream planning and, in fact, will be the core portfolio for many next-generation investors who stand to inherit upwards of $41 trillion in baby boomer wealth.

Source: Investment News (link opens in a new window)

financial inclusion, impact investing