Deep Impact

Due Diligence 

In addition to screening out ​publicly-traded stocks that don't meet our impact criteria, we intentionally seek out investments in social and environmental enterprises, and we engage companies as share-owners to fully activate the entire portfolio for deep impact.

Shareholder Engagement

We collaborate with several corporate watchdog groups  to provide shareholder support for campaigns around climate, social equity, consumer safety, and various social and environmental causes. Our clients receive regular updates about how their individual shares are making a difference. You can view a vault of sample past resolution letters filed with our firm's signature here.

Screening Policies

In addition to the financial data collected during our quantitative investment analysis, we utilize screening tools and sources from trusted partner organizations to identify companies that meet our basic social and environmental criteria.

 

Across all asset classes in all of our models, we provide  investment strategies to meet each investor's selection criteria preferences:

  • Fossil Fuel Free - no investments with any revenue or products generated/sold by or to the oil and gas industry. Invest in the clean energy sector.

  • Women's Equity - no investments in all-male boards. Look for women CEO's, in the C-suite, and on the board of directors.

  • Economic Justice - no investments in companies with egregiously overpaid CEOs, replace big banks with regional banks, and weight in companies scoring high on median worker pay and industries that help support a healthy middle-class.

  • Racial Justice - no prisons, no migrant border detention, no predatory lending. Look for affordable housing, black-owned businesses, formal diversity commitments and best-in-class education.  

  • Socially Responsible - no weapons or military contractors, no tobacco or gambling, no social media or junk food, no mining, no Palestine-Israel conflict. Look for best-in-class investments in healthcare.

Direct Investments

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Over the last two decades, we've develop systems and processes for selecting investments and managing portfolios. Along the way, we've invested significant resources in industry-leading technology and consultants to challenge and improve upon our models where possible. The results are a consistent, effective, prudent methodology across our various asset classes.

Individual Stocks

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Private Equity

At Impact Investors, our core purpose is to help our clients mobilize their capital to address some of the world's most pressing social and environmental challenges, while seeking competitive financial returns. We believe that risks are reduced and opportunities increase when financial returns are adjusted to account for environmental and social impacts. Companies are more resilient when they understand their impact on all stakeholders instead of pursuing only a short-term, extractive financial return to shareholders.

We hold the vision of a society that is sustainable and humane.  We use the following Principals to facilitate where capital will flow in financial markets to fulfill this vision:

  1. At our core, we operate with the values of honesty, transparency, wisdom, and courage.

  2. Each investment is aligned with one or more environmental and/or social justice impact themes, including but not limited to sustainable agriculture, addressing climate issues, racial and gender equity, reducing the wealth gap and supporting education.

  3. Preference is given to investments in organizations that may have difficulty accessing capital, as opposed to well-established companies and industries that have reliable sources of funding.

  4. Emphasis is placed on the potential impact capacity of the underlying investment.

  5. We are open to financially prudent investments in non-profits, co-ops, and other entities with innovative ownership structures that seek to benefit all stakeholders.
     

Mutual Funds & ETFs

We regularly review and rank each available fund in the universe, comparing them to their peer group in the market (not just SRI funds), using a weighted scoring methodology with over thirteen criteria, including performance, expenses, style drift, years of experience, total assets managed, volatility, and several other factors.


We select the final lineup balancing each fund’s overall score with our impact assessment of each investment. For accounts with enough assets, we utilize individual stocks and bonds to reduce costs, lower the taxes, manage interest rate risk, and focus the impact of the portfolio.

Municipal Bonds

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Real Estate

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Risk Parity

Harry Markowitz developed Modern Portfolio Theory (MPT) as a graduate student in the early 1950s, for which he was later awarded the Nobel Prize in Economics. He divided the world of risk into diversifiable risk and undiversifiable risk and showed that by simply adding a variety of investments from a variety of industries, you could diversify your way down to market risk.


In the 1970s Bridgewater Associates helped to develop a portfolio theory that took Modern Portfolio theory and paid extra attention to the risk of each investment and asset class to create a portfolio that attempts to have at least one class of investments that do well no matter whether there is a recession or an expansion happening or whether interest rates are rising or falling. This theory is called Risk Parity in the U.S. and Equal Risk Contribution in Europe.

During the crash of 2008, the overall stock market fell 50% in 12 months. The IMCA notes that according to Modern Portfolio Theory (MPT) and the theory of normally distributed returns, the decline was a three-standard-deviation event that should occur roughly once every 9,000 months (ie. 750 years).


Meanwhile, some assets actually went up in value by over 12%. These “alternative assets” can be safe havens for investors during crisis, actually increasing in value when stocks drop.

 

In our models, we employ a Risk Parity Impact (RPI) approach, using Socially Responsible Investments (SRI) and alternative, high-impact funds to hedge against stocks where prudent.

Model Allocations

Impact Investors, Inc. is a Registered Investment Advisory firm (CRD #289028) specializing in Sustainable, Responsible, Impact (SRI) investing. We provide individuals, families and organizations with a team-based, comprehensive financial planning and investment advisory service, by integrating our client's impact objectives with their financial goals into an overall wealth management strategy. Please review our Disclosures or Contact Us with questions. Copyright © 2020 Impact Investors. All rights reserved.