Social impact investing is a way of investing into a company or fund to produce a defined, positive social outcome with the intention of a return on capital and a possibility of a yield over and above the principle. As a relatively recent development in the investment sector, we have collected 5 key messages we think you should know about social impact investment.
- Social impact investing (SII) is a groundbreaking entry into the financial services arena that matches the narrative of our times with significant potential to help generate a strong economic recovery and the prospects of long term growth.
- There is strong research evidence that a statistically significant proportion of High Net Worth Individuals (HNWI) will view social investment favourably when it is presented to them in a professional manner.
- Social investment has strong government backing, with cross party support, and a recently introduced Social Investment Tax Relief (SITR). There are already strong and successful products available so the sector will grow rapidly if it is included in client recommendations.
- Top level independent advisers and planners will want to fulfil their obligations following RDR and offer a full range of options. Including social impact investment will demonstrate both broad industry knowledge and the desire to meet all the expectations of High Net Worth clients.
- Worthstone is an impartial independent broker of research, policy-maker influence and information which offers provider neutral analysis and assessment of social impact investment products to support the due diligence process of wealth advisers.