Acting on good intentions
Impact investors can aim to generate positive social or environmental impact through our investments. It is the notion of intentionality that, in my opinion, sets impact investing apart from responsible investment approaches more generally.
The companies we invest in should themselves deliberatively set out to deliver a positive impact as part of their mission. Both HDFC and Bank of Georgia, for example, explicitly aim to advance the respective societies they operate in by widening access to financial services.
Where companies can succeed in delivering essential financial services to those excluded from them, I believe they can have a tremendous positive impact for individuals and societies.
Over the long term, this success could be expected to translate into sustainable financial returns for their investors, who can therefore aim to do good without compromising on their own aspirations.
Important information
The views expressed here should not be taken as a recommendation, advice or forecast. The value and income from any fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that any fund will achieve its objective and you may get back less than you originally invested.
About Ben Constable-Maxwell
Ben is Head of Sustainable and Impact Investing, M&G. He joined M&G in 2003 as an Investment Specialist supporting the Global Equities team. He then moved to the Corporate Finance and Stewardship team in 2013, where he began focusing on corporate governance and ESG at international companies. Ben has been responsible for developing the incorporation of ESG in M&G’s investment processes and sits on M&G’s Responsible Investment Advisory Committee, which oversees Responsible Investment activities at M&G including the firm’s membership of the UNPRI. Ben graduated from the University of Newcastle-uponTyne with an Honours Degree in Classics before spending four years in the Equities team at Invesco Perpetual.
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