Making an impact: The breakdown of impact investing and why you don't need to sacrifice returns

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Trend Hunter Series

Making an impact: The breakdown of impact investing and why you don't need to sacrifice returns In this session, we join Affirmative Investment Management, Kilara Capital, and Conscious Investment Management as they deep dive into the burgeoning field of impact investing and discuss why you don't need to sacrifice returns illustrated through real-life case studies, and explain how impact investing differs from ESG investing.

10th September 2021 This document is for general use. Modification of content is prohibited unless you have Netwealth’s express prior written consent.


Before we get started

The views expressed in this presentation are those of the author and presenter and do not necessarily reflect those of Netwealth Investments Limited’s. It is a general summary only. It is not advice nor an endorsement of any product or service. Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) is a provider of investment products and services and information contained in this presentation is of a general nature which does not take into account yours or your client’s individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth (or its related parties) should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision and before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth (including its related parties) product. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors are not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information. This presentation is for general use. Modification of content is prohibited unless you have Netwealth’s express prior written consent.

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Housekeeping

1 CPD point available • Must have attended for >40 minutes • CPD details will be included in the postwebinar email

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This webinar is being recorded • Slides will be sent to you after the webinar via email

Enter your questions in the questions of webinar toolbar • We will get to them at the end of the webinar


A little bit about Netwealth See wealth differently

As a specialist platform provider, Netwealth provides financial advisers with a wide range of financial products & services to help manage their clients’ investments and superannuation.

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See wealth differently


Award winning platform Industry recognition for overall satisfaction, service excellence and technology

Investment Trends 2020 Platform Benchmarking Report

Investment Trends Planner Technology Report

Highest overall satisfaction score among primary users for the 9th year in a row

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See wealth differently

Chant West Best Advised Product

Asia's 200 Best Under A Billion1


Meet today’s Trend Hunters

Ben Krasnostein

Co-Founder and Managing Director Kilara Capital

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Matthew Tominic

Founder and CIO Conscious Investment Management

Kate Temby

Board Member and Independent Director Netwealth


The spectrum of responsible investments ESG and Negative Screening

Traditional Finance-only

Sustainable Positive Screening

Impact investing

Concessionary returns investing

Philanthropy

Delivers competitive returns Mitigates environmental, social and governance (ESG) risks Pursues environmental, social and governance (ESG) opportunities Focused on measurable high-impact solutions Limited or no regard for the social and environmental consequences of an investment

Focus

Negatively screen out investments with poor practices in order to protect value

Pursue sustainable opportunities – focus on investing only in sectors that have progressive ESG practices that may enhance value

Address societal and environmental challenges while generating market rate financial returns for investors

Address societal challenges that require a below-market financial return for investors

Address societal challenges that do not generate a financial return for investors

Renewables, waste reduction, gender & racial equity

Environment and climate, health, education, sustainable development

Support for innovation, proof of concept, catalytic capital.

Catalytic capital, social change, political change, environmental protection

Green buildings (5%-7%)

Impact bonds (2-5%)

Renewable Energy Infrastructure (6%-8%)

Private Equity (20%+)

Buying property and providing rent free to a not-for-profit

Target Sectors

No filters

Eliminating certain investments from a portfolio - tobacco, gambling, weapons, mining?

Investment Examples

Oil & Gas Listed Equities

Tech Listed Equities

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Housing (6-8%)

Climate Works Blueprint Institute WWF


Questions and answers


Thank you Trend Hunters Series We hope you’ve enjoyed Netwealth’s Portfolio Construction Trend Hunters series. You can catch up on any missed presentations with recordings and slides available for every session at netwealth.com.au/web/insights

Portfolio Construction Podcast In this podcast series, our investment research team pick the brains of key wealth management professionals to uncover unique insights on the investment areas they are most passionate about.


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