Like all investments, impact investments can fall in value as well as rise and you risk not getting back as much as you originally invested.
Three main features help to establish if an investment is an impact investment
- Impact investments seek to generate a financial return and have a benefit to society
- They look to measure and report on the impact they generate
- They invest in the sectors that have the potential to generate positive outcomes that address some of the challenges that we face as a society.
How is impact investing different?
Impact investing is traditional investing combined with philanthropic aims. New options emerge where the aims of generating a financial return and creating societal impact overlap.
Investing has traditionally targeted financial returns with no, or minimal, consideration for environmental, social or governance factors, or their effects.
Impact investing offers the possibility of simultaneously generating returns and mitigating or addressing societal and environmental challenges.
Philanthropy has sought to mitigate or address existing societal issues through charitable giving.
Incorporating investment approaches for impact
Barclays is proud to support Good Money Week, a leading campaign to help investors across the UK understand the impact their money makes on the world, and the options they have when investing.
Every day the savings and investments our customers make via Smart Investor have an impact on the world. Like Good Money Week, we want to help investors who care about this impact make the choices that are right for them.
If impact investing appeals to you, the next step is to consider how to build impact considerations into the investment choices you are making. Like all investing there are many approaches you might take, from making an individual investment to constructing an entire portfolio.
Like all investments, impact investments can fall in value as well as rise and you risk not getting back as much as you invested.
Other impact investments
Take a look at the funds and ETFs available on Smart Investor that the Barclays team has classified as having the characteristics of impact investments.
Barclays Multi-Impact Growth Fund
Find out about the fund created by the Barclays Impact Investing team. Using Barclays investment expertise they blend investments in other funds across a broad range of asset classes, giving you diversification whilst taking advantage of some of the leading impact products available.