Hello community,
sharing an interesting article from Schroders on impact investing and alpha.
Impact as a Source of Alpha: The Elephant in the Room
Schroders' article, "Impact as a Source of Alpha: The Elephant in the Room," delves into the evolving landscape of impact investing, challenging the traditional notion that prioritizing positive social and environmental outcomes necessitates sacrificing financial returns. The piece argues that impact investing can indeed be a source of alpha, offering both measurable societal benefits and competitive financial performance.
Key insights include:
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Integration of Impact and Returns: Impact investments are not just ethically sound but can also drive superior financial returns by tapping into emerging markets and addressing unmet needs.
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Robust Impact Framework: Schroders emphasizes the importance of a structured approach to impact measurement, ensuring that investments deliver tangible outcomes alongside financial gains.
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Collaborative Efforts: The partnership with BlueOrchard has enhanced Schroders' capabilities in impact investing, combining expertise to scale impact across various asset classes.
This perspective encourages investors to view impact investing not as a trade-off but as a synergistic approach that aligns ethical considerations with financial objectives.
I know we have a lot of impact investors as our members - would be interesting to hear from you if you share the same views?
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Aya Pariy
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