Impact investing has grown exponentially in recent years, and it does not seem to be slowing down any time soon. According to Morningstar, ESG funds in the U.S. have attracted $8.4 billion in just the first half of 2019 – already shattering the previous annual record of $5.4 billion in 20181. With this shift in investor behavior, more investment managers are looking to implement impact/ESG strategies to join the movement. But are they all qualified to be doing so?
Experienced impact/ESG investment professionals have track-records of both financial and impact performance. It is extremely important to find evidence of a well-applied strategy through statistics and reporting. Otherwise, the impact/ESG-labeled strategy could simply be a characteristic applied to a prospectus or presentation but doesn’t create or deliver the impact that the investor is being promised.
At CCM, throughout our nearly two decades of experience in impact/ESG investing, we are committed to showing our clients the numerous positive impact outcomes of their investments that go beyond checking a box for impact/ESG investing. As pioneers and innovators, we continuously look at new ways for our clients’ investments to have a meaningful impact – whether it’s adding new impact themes, adding new impact metrics, or updating our technology to improve upon our reporting.
Just like any investment, there are risks and returns and a spectrum of offerings in the impact/ESG investing space so conducting due diligence and knowing the experience and history of the investment manager is critical.