Gone are the days when corporations were only about profits. For investors who want to leave an impact on the world, socially responsible investing (SRI), or impact investing, has become more popular. Falcons Rock Impact Investments helps you leave your mark on the world: we want to make sure that your money can do good as well as earn a positive long-term rate of return…a "double bottom-line."
Before You Invest Aside from funding good, you as an investor need to do some homework before you select a portfolio. Get to know the investment world and consider your goals. Your ethical fund choices will likely be dictated by what the market is doing as well as the things you believe in. View our process to better help you prepare.
What Funds and Investments are Considered? To be considered an SRI fund, it has to adhere to certain social, moral, religious, or environmental beliefs. In order to determine whether the companies meet these requirements, there is a screening process that they must go through. Companies held to these standards need to prove through their practices and transparency that they are worthy of your investment.
When You Decide to Invest
Impact investments aren’t much different from other kinds of funds in terms of the end goal: investing in different organizations, watching their values change, and ideally making a return on your investment. Once you’ve invested, you’re given shareholder status with the companies you’ve invested in. The fund manager then acts as your proxy. What this means is that the fund manager will engage with companies to encourage the socially-responsible behavior that drew you to investing with them.
What the Funds Management Firm Does You don’t have the time to represent your interests to the companies you’ve invested in, so there are a number of ways that a funds management firm can hold the organizations you invest in responsible for their SRI criteria. In addition to voting on your behalf and discussing issues of social responsibility with the companies, firms can work on public policy, file proposals, write letters offer advice or constructive criticism to companies, provide insight into shareholder views by attending shareholder meetings, and, when necessary, remove companies from ethical funds investment lists.
Learn More with Falcons Rock Impact Investments While more people are talking about it, the world of SRI investing is still fairly new to everyone. Everyone from experienced investors to people looking for their first mutual fund still has quite a bit to learn about this area. No matter who you are or what mark you want to leave on the world, we can look at ways to help you do more. Read our frequently asked questions to learn more.