Private Banks Massively Increase Impact Fund Offerings

According to the Global Sustainable Investment Alliance, the global market for impact investing—which it defines narrowly as targeted investments aimed at solving social or environmental problems—has surpassed $109 billion, 26% higher than in 2012. That number is expected to increase to $650 billion by 2020, claims the Calvert Foundation.

The impact investing business, not too long ago a cottage industry with only tiny funds on offer, is increasingly coming to market with more and bulkier impact investing funds, which is changing the industry’s dynamics.Consider the Pax Global Environmental Markets Fund, which has $305 million assets under management in the U.S. and $4.6 billion globally. Its global equity strategy is focused on companies that are efficient with water, waste, and energy, and firms active in sustainable food and agriculture.

There’s a low $1,000 minimum investment at the fund and a 1% management fee; it’s distributed by banks and broker dealers. The fund has earned an average 6.6% annually over the last three years.

Source: Private Banks Massively Increase Impact Fund Offerings – Penta Daily – Barrons.com