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Fast-forward to 2020, and impact
What Is Impact Investing?
investing is more popular than
It’s highly likely that you’ve heard of
ever. Today, with a number of funds
impact investing before, but possibly
available that focus on key issues,
by a different name. Over the years,
investors may be able to have more of
investors have used other terms, such
an impact than ever. 4
as “community investing,” “green
investing,” “socially responsible
Investing in mutual funds and
investing,” “sustainable investing,”
exchange-traded funds (ETFs) is
and “values-based investing.” 5
subject to risk and the potential loss of
principal. Both mutual funds and ETFs
Just as its designation has changed
are subject to the market and risks of
over time, the evaluation criteria
their underlying securities. Both may
of potential investments and the
have a trading price, which may be at
basic premise of impact investing
a premium or discount to the net asset
itself have both evolved as well. Put
value of the underlying securities.
simply, today’s version of impact
There is no assurance or certainty
investing is a discipline that considers
that any investment or strategy will be
environmental, social, and/or
successful in meeting its objectives.
corporate governance (“ESG”) criteria
Investors should consider the
to generate long-term, competitive
investment objectives, risks, charges,
financial returns and a positive impact
and expenses of the fund carefully
on society. 6
before investing. The prospectus
contains this and other information
It’s important to note that there is no
about the funds. Contact the fund
single way to invest for impact, since
company directly or your financial
every investor has different social
professional to obtain
and financial goals. For example, one
a prospectus, which
investor may wish to avoid or divest
should be read
from companies that manufacture
carefully before
firearms, while another may decide
investing or
to invest in companies that take an
sending money.