Impact investing is becoming more popular than ever but how can advisers and their clients understand nuances and other factors that come to bear on these investments.
Speaking to FT Adviser editor Simoney Kyriakou, Michael Ganske, fixed income portfolio specialist for T Rowe Price, said it was important to remember that 'impact' investing is not just a
He said: "In the past, when I started 25 years ago or so, investors were looking for returns; they did not really care about what the companies were doing or the external effects.
"So impact is basically when investors think about their goals - is it environmental or social?- what can they achieve with that investment.
"So really targeting firms and bonds that have a positive spill over into this area."
Ganske added: "It's about additionality, creating additional effect, and measuring it. It's a more complex approach."
He also explained the implementation and measurement of products that enable clients and their advisers to invest in and analyse the financial and values-based impact of that investment, as well as outlining the fast-paced growth of the global impact bond markets.
To watch the full video, click on the link above.
