Socially responsible investing...

More and more Enable IFA’s in Bishops Stortford listen to people who want to know what their investments are used for. Some funds are trying to take steps towards providing solutions for example the AXA Impact Investment Initiative, which launched last September.  It is one of relatively few socially-focused "funds of funds". A fund of funds is a portfolio of investment funds rather than direct investments in stocks, bonds or other financial instruments. "A fund of funds helps to pull together small pools of capital and make them large," said Lloyd Kurtz, faculty co-chair of the Moskowitz Prize for socially responsible investing at the University of California Berkeley.” 

But Kurtz said that while impact investing has expanded its role in the market, there have been a limited number of asset classes involved – particularly private equity, venture capital and hedge funds. "It's been difficult to have critical mass needed to have credible social investment offerings."
But according to Matt Christensen, global head of responsible investment for Paris- and London-based AXA Investment Managers, the fund is larger than most of its type, particularly among institutional investors.

The fund of funds however got a mention in a recent report on impact of investing by the Global Impact Investing Network and JP Morgan. Based on a survey of 125 impact investors, they identified a "lack of appropriate capital across the risk/return spectrum" and a "shortage of high quality investment opportunities with a track record". If you want to understand more about socially responsible investing it is wise to talk it through with and advisor so you can put things in perspective.

Issued by: Enable Independent Financial Life Planners
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