Posted on: May 11th, 2015
In response to the growing importance of ‘Impact Investment’ sriServices has today added three related questions to their online ‘sriStyleFinder‘ fact find questionnaire . This means that when these questions are selected the user will be told that they may favour ‘Specialist’ fund options.
The link to the client microsite that explains this area is: http://stylefinder.fundecomarket.co.uk/
Impact Investment is subtly different from what most advisers might regard as SRI or ethical investment – but in many cases these options have a great deal in common. In particularly – ‘encouraging positive change’ is a common aim for investors and fund managers alike across these areas.
A major difference between these two fields is that Impact Investment typically focuses more on ‘outputs’ and in particular the ‘measuring positive impacts’. This can lead to more concentrated investment in smaller companies and therefore potentially higher investment risk – hence the ‘Specialist’ classification. This will suit some investors, but not others.
This does not however mean that more specialist investment areas such as Impact Investment of Social Impact funds should be ignored by advisers or investors.
Many people welcome the opportunity to hold a proportion of their investment in funds where it is very clear what their money is being used for and who is likely to benefit from their investment. However in many cases this can imply higher risk, which is not always suitable. This makes seeking professional, independent financial advice all the more important.
The aim of our online questionnaire is to help clients to articulate their aims and identify the sriStyles that most closely fit their ‘sustainable and responsible investment’ aims and objectives.
Once someone’s preferred ‘sriStyles’ have been identified it is them possible to find relevant SRI options quickly and easily via the Fund EcoMarket database .
An updated version of Fund EcoMarket will be launched soon.