Impact Investing — Using Green Thinking to Make Green Dollars

April Rudin writes for the Huffington Post:

Impact, socially responsible or sustainable investing has slowly crept onto the investment scene as an alternative asset class. But it has gained attention, in part, to mitigate the bad karma created by Madoff and others, non-transparency of investments, the recession, low interest rates, a depressed economy, and high unemployment. Socially responsible investing is the feel-good asset class. It’s the intersection of banking, philanthropy and Wall Street. Investors are shunning ‘get rich’ firms who are ruining our planet. Upcoming Gen-X and Gen-Y investors and their dollars want to make a difference. It will therefore be a growing social community of like-minded investors.

Simultaneously, increasing numbers of high net-worth individuals, wealth managers, institutional and other investors want to “doing good while doing well.” These individuals are of the baby-boomer generation. Some have been late adopters and doubted the “depth” of this movement but clearly there is groundswell among those who want to generate return either partially or even wholly through funds or direct investments. This has led to the creation of boutique Wall St. firms which zero in on this specialization and larger financial institutions have creating small teams to focus on locating, understanding and vetting investment opportunities. As it is early, there is still conversation over whether or not impact investing is indeed an asset class or an underlying strategy which will be eventually used in all products.

Read the complete article: Impact Investing — Using Green Thinking to Make Green Dollars

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