Impact investments can contribute positively to asset diversification, lower overall volatility and reduce the effect of negative externalities. They can also increase the future fitness, resilience and prospects for long-term capital growth and overall performance of pension funds and other forms of institutional assets. There are lots of important questions that trustees and other asset owners need to ask themselves and answer and this module is designed to support that process.

How to use these resources

The initial sections of this module help asset owners to think about why and how to invest with impact. The subsequent material looks at the effect of incorporating impact at a total portfolio level. There is then a review of impact and fiduciary duty as well as other legal and regulatory questions for asset owners, before the section closes by looking at how impact influences communication with beneficiaries. 

Resources

Determining impact investment strategy 

Impact investment risk, return and portfolio effect 

Fiduciary duty and regulation 

Beneficiary communication 

New research out now

White Paper: Scaling up institutional investment for place-based impact

Our joint white paper “Scaling up institutional investment for place-based impact,” based on the collaborative “Place-Based Impact Investing Project (PBII)” by the Impact Investing Institute, The Good Economy and Pensions for Purpose, sets out the case for institutional investors to adopt a “place-based lens.”