1. Newsroom
  2. Asset TV Masterclass: impact investing
Menu
UBP in the press 03.07.2020

Asset TV Masterclass: impact investing

Asset TV Masterclass: impact investing

Impact investing is not a new concept, but it has been gaining ground since the start of the COVID-19 pandemic. So what does impact investment really involve and what are the prospects for impact solutions?


Eli Koen, Emerging Equities Portfolio Manager at UBP, recently participated in an Asset TV Masterclass discussing how impact investments in public markets can use investors’ capital for public good.

 

With more and more people realising how vulnerable we are to the alarming trends in biodiversity loss and climate change, and how deepening inequalities are starting to threaten the resilience of our societies, the COVID-19 crisis has thrown a fresh light on impact investing.

“Impact investing concentrates on what the main global challenges are and how can we create solutions for them,”

stressed Eli Koen, along with other industry experts during the Asset TV Masterclass.

He then set out what differentiates impact investing from ESG (environmental, social and governance) investing. “Impact investing consists of investing for a measurable social and environmental impact with a return target,” he says. “It’s mostly about what the company does rather than how it does it, which is the main focus of ESG. The question that has to be answered is this: is this company driving positive change in the area under consideration?”

Impact investors concentrate on the most pressing global challenges and pick the companies that are coming up with the best solutions. These companies, UBP’s specialist tells us, are in a good position to generate favourable returns.

“Impact investing solutions give investors the opportunity to make sure that their investments are aligned with their values. But people tend to think that focussing on impact means that something has to be given up in terms of returns. This is not true,” he adds. Indeed, impact and returns coexist and are mutually beneficial. “The most important message is that there’s no trade-off between returns and positive impact,” insists Koen. In other words, doing well while doing good is a very achievable objective.

Until a few years ago, impact investing was largely confined to private equity, meaning that it was not easy to access opportunities. It has since evolved to include listed securities which give investors an easier way to invest with the aim of generating a positive social or environmental impact.

Nevertheless, selectivity is key in impact investing: the number of companies that can credibly claim a meaningful contribution to a positive change with a high potential for growth is much smaller than the number of generic listed equities.

In emerging public markets, for example, there are thousands of stocks to invest in. However, in screening these markets over the last three years, Eli Koen has only identified 150 stocks as good candidates for impact investing.

Impact investing

Koen.jpg
Eli Koen
Portfolio Manager

Expertise

Impact investing - Contributing to a more sustainable future

What are the key features of impact investing?

Read more

Le news più lette

UBP in the press 24.04.2020

Is your low-carbon portfolio destroying the planet?

Responsible Investor (22.04.2020) - An investor who focuses solely on low carbon emissions could end up investing in polluters, while excluding some of the most important providers of solutions to the climate emergency.

UBP in the press 28.04.2020

How to hedge when volatility itself becomes volatile

Professional Pensions (24.04.2020) - The fastest bear market in history ends one of the longest-ever bull markets

UBP in the press 21.08.2020

Does private education generate positive impact?

Environmental Finance (14.08) - There is a strong argument for saying that private education has no place in impact investing because education is a basic public good that should be freely accessible to all. 

Altro da leggere

UBP in the press 12.10.2020

The private banker’s metamorphosis

Le Temps (12.10.2020) - Few have been forced by their environment to go through such a deep professional change as private bankers. While relationship-building and advising remains their core role, their job today does not have much in common with what it was before the 2008 slump.

UBP in the press 09.10.2020

FRNs: an attractive medium-term opportunity

Institutional Money (08.09.2020) - FRNs offer an attractive risk/reward profile at the effective lower bound

UBP in the press 29.09.2020

Adrian Kuenzi: «I Wanted This Rupture»

Finews (28.09.2020) - Adrian Kuenzi has taken his next career step at Union Bancaire Privée, he told finews.com in an interview. The bank will keep investing, because the best of cost-cutting program won't help it win new clients.