Why ‘Impact Investing’ Will Pay Off in 401(K) Performance
Thursday, April 14, 2016
Walk through the doors of Green Alpha Advisors in Boulder, Colorado and you get what you’d expect; an open space floor plan with an older model bike in the entryway that’s art (or maybe not) and a garage door to open on sunny days. Add in the organic nut company next door and the impact investing stereotype is complete—and paying off handsomely.
The firm, founded 2007 by Garvin Jabusch and Jeremy Deems, grew out of the socially responsible investing movement of the last decade and “was probably a little ahead of the curve,” partner and COO Betsy Moszeter admits, but it’s perfectly positioned now for a millennial generation that wants to do well by doing good.
“Investors, and millennials in particular, are looking for green options in their 401(k)s, and plan sponsors are beginning to respond,” Moszeter explains, while also referring to new regulations that require 401(k) advisors and plan sponsors to consider impact investing on their investment menus.
When asked about the old Vice Fund argument, that investment returns and investor ideals are mutually exclusive and one must be sacrificed for the good of the other, she doesn’t buy it, and points to a recent Morgan Stanley report tilted “Sustainability Through the Eye of the Investor” as proof.