Dear investor, As a Female, Christian, Millennial, Active Trader
I have every characteristic of Impact Investors.
And as you probably know impact investing: aiming at market
level returns with measured impact, is the fastest growing
investment strategy within the Socially Responsible Investing
universe . Which is growing faster than the investment market as a
whole. Investing in for instance megatrends, basic needs and impact
catalysts give strategic portfolio advantages & lower
volatility.The good news: impact investing is not as 'exclusive '
or 'complex' people tend to think. I develop practice based tools
and maps for private investors and asset managers to understand the
impact investment universe and how to implement impact investing
strategies.
Drs Alcanne J Houtzaager MA Speaker on Impact Investing
The map shows Classic, Philanthropic, Direct & Indirect
Impact Investing & Crowdfunding for Impact. Unless you managing
huge assets you will find only the latter three are 'inclusive' in
offering impact investing options.
Impact Investing InstrumentsThe market offers more and more
impact investing instruments. Especially corporate Green bonds are
booming, but hardly available for smaller investors. Top lister
Luxembourg just launched the Green Echange for 'planet' investing
and the London Stock Exchange lists retail charity bonds for
'people' projects. Worldwide Social & Development Impact Bonds
are going viral in private equity and up to millions in start-up
investments.
How much Impact?Inspired by the EU's Risk Meter for stuctured
Investment products such as funds and ETP's, I developed the Impact
Indicator for Investment Products. I built on Sonen Capital's
Portfolio model developed for the KL Felicitas Foundation,
presented at the World Economic Forum.
And I love to share my knowledge! I wrote 'the Past, Present and
Future of Impact Investing' summarizing 4 years of following Impact
Investing developments and trends. Annually it is apudated with
facts & figures and events. To give insight in the different
types of Impact Investing I developed 'Mapping Impact Investing',
which describes the major players, their strategies, impact
instruments & markets.
These days the majority of impact investors aim at 'balancing
impact and return'. Which is vital to make it financially
sustainable and scalingthe impact. Of course in time it will also
accelerate the development of the sector as a whole.
Inclusive Impact InvestingThe Impact Investment Universe offers
plenty of public equity opportunities. In sectors such as: Work
& Income, Nutritious Food, Financial Inclusion, Clean Water
& Hygiene, Accessible Healthcare, Affordable Safe Housing,
Renewable energy, Clean & Green Technology, Private Education
& ICT, Climate Transition and protecting global Biodiversity.
The SRI Universe offers impact trends such as population growth,
ageing and the circular economy. Growth in products & services
for people at the Base of the Pyramid and the upcoming Middle
classes are relevant in Developing &Emerging Markets. In
Developed Markets investing in small (women) entrepreneurs as job
creators is a catalyst, but also community development for
vulnerable people and underserved communities.
The Impact Indicator for Investment Products gives insight in
the overall impact level and focus of investment products. It is
based on existing strategies such as Exclusion, ESG Risk & ESG
Opportunities. It ranges from -1: I'll invest in anything even
illegal weapons and totalitarian regimes to 6: I care about Impact
and am willing to give up return. Which is a former impact style
practiced by some charities and development banks.
Impact Asset Classes When defining impact strategies and
diversification goals geographical location, target groups and
themes are key.Where, Who & What. Based on existing investment
products in public equity I present an impact asset class model
with: Mesofinance, Growthcapital, Impact Finance, Property, Basic
Needs, Catalyst & Thematic Investing.
Charities & Impact Investing With fiscal support for Program
Related Investments large and 1in10! small US charities have
embraced impact Investing. The UK is also far ahead supported by
the governments Social Investment Policy stimulating Social Impact
Bonds with local investment funds, contracting and national
implementation of a successful local project. Charities can
increase their impact 20-fold from 5% pay out in grants to 100%
impact invested assets. Or work as Engager, Capacitybuilder,
Informer or Partner. Want to see?You Tube Alcanne For speaking
engagements please contact my booking agency ZijSpreekt: email
[email protected] Or call Marga Miltenburg +31 6 53 14 87 96 The
website in Dutch www.zijspreekt.nlFollow me on Twitter @Alcanne or
Linked In: Alcanne Houtzaager
Equity picking starts with impact sectors and regions, followed
by ESG checks en impact awareness & ambition. Not mere
'decoupling', growth with a smaller footprint, but also are the
UN's Sustainable Development Goals integrated in the corporate
strategy? Crowdfunding for Impact offers possibilities to starting
impact investors. Think social enterprises & impact projects.
The market is growing and developing with consumer protection
legislation & formal finance hooking up with crowdfunding for
layered financing. To select projects I developed the PRICP
checklist: Price, Return, Impact, Catalyst & Public as a
respons to Brain Trelstad's 5P's in Harvard Business Review,
January 2016.
