Aubre Clemens: Impact investing is investing along your mission. So finding specific types of investment opportunities to allow you to provide funding to that mission.
They tend to be more focused on affordable housing, focused on education and healthcare, but what they are looking to accomplish is more than just your traditional return. It's also giving you that component where you actually can quantify what your money has done to provide a solution for something.
Most of the impact investments are done through direct or private equity. You tend to have less liquidity with impact funds because of the time needed to be invested. And they're usually five to ten years long.
Impact investing is growing in popularity for women as well as millennials that are looking to find ways to give back to their communities.
The UN established back in 2015 what they call the sustainable development goals, which have actually been great in providing some framework for our managers to quantify their impact over time. It allows them to show what they are actually being able to accomplish by investing in a specific way.
So whether that be focusing on getting cars off the road, you can actually look at your carbon footprint and measure that relative to an index.
For us, we're looking at the teams that have been in place. How long have they been focused on impact investing.
Do they have strong performance or has it been tied to one specific company that they've owned? Or has it been more diversified across their portfolios over time? We also look to make sure that it's actually part of the culture of a firm. We want to make sure that they are doing impact because they believe in impact and that they can drive returns over time.
JPM – Impact Investing – June 2018 - Text Alternative Script
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Opinions expressed are those of the speakers and may differ from those of other JPMorgan employees and affiliates. Neither JPMorgan nor any of its affiliates can represent that the statements or opinions expressed today will materialize.
This is not an investment research video. The views and strategies described may not be suitable for all investors. This video is not intended as personal investment advice or as a solicitation or recommendation. If you are considering any investment or strategy, you should speak with your JPMorgan representative before investing. Past performance is no guarantee of future results.
Please read important information at the end of the presentation.
INVESTMENT PRODUCTS:
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
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Impact Investing.
Ms. Clemens:
Impact investing is investing along your mission.
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Aubre Clemens, Vice President, JPMorgan Manager Selection Due Diligence Team.
Ms. Clemens:
So, finding specific types of investment opportunities to allow you to provide funding to that mission.
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Impact Investing. Common impact investing sectors:
- Community Development;
- Microfinance;
- Small Business Finance;
- Education;
- Renewable Energy and Climate Change;
- Sustainable Agriculture and Development;
- Health and Wellness;
- Natural Resources and Conservation:
- Sustainable Consumer Products and Fair Trade.
Ms. Clemens:
They tend to be more focused on affordable housing, focused on education and healthcare, but what they are looking to accomplish is more than just your traditional return. It's also giving you that component where you actually can quantify what your money has done to provide a solution for something.
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Close-up of Ms. Clemens.
Ms. Clemens:
Most of the impact investments are done through direct or private equity. You tend to have less liquidity with impact funds because of the time needed to be invested. And they're usually five to 10 years long.
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Impact Investing. Shifting wealth dynamics continue to drive demand for impact investing:
- $58.7 trillion of wealth will transfer over the next 35 years, primarily to women and millennials. Source: Center of Wealth and Philanthropy of Boston College.
- 90% of woman believe making a positive impact on society is important. Source: Center for Talent Innovation.
- 45% of Millennials want to use their wealth to help others, and consider social responsibility a factor in making investment decisions. Source: Spectrem Group.
Ms. Clemens:
Impact investing is growing in popularity for women as well as millennials that are looking to find ways to give back to their communities.
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Infographics illustrate accompanying text.
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Impact Investing. United Nations Sustainable Development Goals:
- No Poverty;
- Zero Hunger;
- Good Health and Well-Being;
- Quality Education;
- Gender Equality;
- Clean Water and Sanitation;
- Affordable and Clean Energy;
- Decent Work and Economic Growth;
- Industry, Innovation, and Infrastructure;
- Reduced Inequalities;
- Sustainable Cities and Communities;
- Responsible Consumption and Production;
- Climate Action;
- Life Below Water;
- Life on Land;
- Peace, Justice, and Strong Institutions;
- Partnership for the Goals.
Ms. Clemens:
The UN established back in 2015 what they call the sustainable development goals, which have actually been great in providing some framework for our managers to quantify their impact over time.
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Close-up of Ms. Clemens.
Ms. Clemens:
It allows them to show what they are actually being able to accomplish by investing in a specific way. So whether that be focusing on getting cars off the road, you can actually look at your carbon footprint and measure that relative to an index. For us, we're looking at the teams that have been in place. How long have they been focused on impact investing. Do they have strong performance or has it been tied to one specific company that they've owned? Or has it been more diversified across their portfolios over time? We also look to make sure that it's actually part of the culture of a firm. We want to make sure that they are doing impact because they believe in impact and that they can drive returns over time.
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