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Impact Investing

Impact investing is not a new term. The idea of investing and doing good at the same time is hardly an innovation by itself.

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Impact investing is not a new term. The idea of investing and doing good at the same time is hardly an innovation by itself. The trouble is, up until very recently it was a losing proposition.

In practical terms, impact investing comes in two flavors. Socially Responsible Investing (SRI) follows the do-no-evil motto. A fund claiming to be SRI would review their investment universe and remove all companies committing socially responsible “sins” – typically, companies involved in tobacco, alcohol, firearms, gambling, etc. The other flavor is ESG, which stands for Ecology, Social, and Governance. In this case the fund manager would start with an empty list and add companies that specifically fit the criteria of having a positive impact in one of the three target categories.

For years, many businesses that fall into the impact investing criteria have been receiving subsidies and progressive charity donations. Investing in them mostly resembled a charitable contribution as well. No longer. With electric vehicles finally a reality, solar energy finally cheaper than traditional sources, years of medical research finally yielding viable and profitable medical breakthroughs – the age of impact investing, where you can do good and have positive investment returns as well, has arrived.

Thematic investing is another technique that’s been around for a while. It involves recognizing a trend – due to economic, demographic, geopolitical, regulatory or technological factors – and identifying the investment opportunities that would benefit from that trend. Impact investing could be one of the themes, but so are many others from Internet of Things to Frontier Markets. Thematic investing has long been a staple in institutional portfolios, but it traditionally required dedicated research teams and active management, making it prohibitively expensive to individual investors.


Now, there is a new company that brings all these concepts together and offers them to investors at a fraction of the price of larger investment firms. Passed Pawn Advisors will design a core portfolio based on an investor’s time horizon and risk tolerance similar to robo advisors. But what makes them a game changer is that they will also allocate a portion of the portfolio to the themes that reflect each individual investor’s values and passions, which they create and manage.

Automatically allocated, professionally managed – Passed Pawn Advisors combine the best of both passive and active investing worlds. Their plans let you choose how much interaction you’d like to have with a professional advisor, and they will also donate 2% of their fees to the charity of your choice. Check them out and change the game!

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