Why Impact based investing and the current gap in investment offerings
The individual investor community has lost confidence in active manager's ability to consistently generate alpha through active management and have turned to cheap beta products to get market exposure in a low cost manner.
However, the investor community values their capital for the potential benefits that can accrue to society as well as profits for themselves. Current socially responsible investment options focus on the filtering out businesses that are engaged in what may be viewed as morally or socially suspect business. We seek to provide investors with market outperformance while investing in specific social goals of established leaders in belief based investing. We partner with foundations/religious denominations and other socially responsible organizations to gather assets in order for them to invest (as subadvisors) consistently with their system of values. The benefit to the organization is the additional capital used to create better engagement with the business and investor community to influence policy towards their area of interest. Additionally, all or a percentage of net profits will be given back to the governing body through a charitable contribution. Through this vehicle the organization will be able to engage in a more meaningful way to potential future charitable contributors (as their wealth and life stage allows) and build a lifelong relationship with their donor base and their extended network.
Exchange traded funds ("ETF")
By structuring these strategies as an ETF the investor gets easy and efficient access to the strategy through an exchange listed pool of securities that is bought and sold similarly to an individual stock. Listing ETFs on foreign exchanges is commonplace and is a relatively easy way to tap into the growing global middle class as an avenue for future growth.