In an evolving financial landscape, impact investing has emerged as a transformative strategy that marries substantial financial returns with positive social and environmental impacts. As awareness of global challenges such as climate change and social inequality rises, more investors are seeking opportunities that reflect their values while still delivering competitive returns. At United Advisers, we are committed to guiding our clients through the world of impact investing, offering access to investments that not only manage wealth effectively but are also sustainable.
The Ascendancy of Impact Investing
Impact investing directs capital towards projects expected to yield significant social or environmental benefits alongside financial gains. This sector has seen exponential growth, now managing over $1 trillion globally, as per the World Economic Forum. With a predicted compound annual growth rate in the double digits up to 2030, the trajectory for impact investing points sharply upwards.
Major pension funds and institutional investors are increasingly drawn to this sector, committing large capitals towards sustainable initiatives. Notably, the California Public Employees’ Retirement System has pledged $100 billion to climate solutions by 2030, aiming for a net-zero portfolio. Similarly, the New York State Common Retirement Fund has recently doubled its commitment to sustainable investments to $40 billion, a strategic decision to safeguard pensions against climate risks.
European Market Dynamics
In Europe, there has been a significant increase in specialised impact funds.
European investors are showing a keen interest in aligning their impact programs with regulatory standards such as the Sustainable Finance Disclosure Regulation (SFDR) Article 9 funds. These funds must meet stringent sustainability criteria, ensuring that investments are genuinely conducive to environmental and social betterment.
United Advisers’ Commitment to Impact Investing
At United Advisers, we recognise the importance of aligning investment strategies with sustainable and ethical principles. We provide our clients with a portfolio of carefully vetted impact investments that promise not only financial returns but also positive contributions to societal and environmental challenges. By investing in such transformative projects, our clients can achieve a balanced portfolio that supports their financial goals and reflects their values.
Companies within the portfolio are in the femtech, fintech and Greentech spaces, one of them being Clementine, which has made cognitive hypnotherapy more accessible to especially women, with on-demand sessions available at a more affordable price than that of the cost of a physical therapist appointment.
iForm is another company part of the portfolio dedicated to sustainable housing units. It is a British composite building specialist that formed successful partnerships across the island, including with the Royal National Lifeboat Institution, Royal Navy, Army and Air Force Institutes, and the British Police. iForm provides buildings made from 98% recycled plastic.
Global Sustainability
Impact investing represents a strategic evolution in the investment world, one that allows capital to be a force for good, fostering a sustainable future while also generating robust returns. As this sector continues to grow and mature, United Advisers remains at the forefront, ready to assist our clients in navigating this promising field. We believe that through informed and thoughtful investment choices, we can help create a legacy that goes beyond wealth, towards building a more sustainable and equitable world for future generations.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity.
