Impact Investing Beyond Your Portfolio

  • Where you bank
  • Who/what receives distributions from your Donor-Advised Fund (DAF)
  • What funds are within your 529 Plans for education
  • What funds are offered through your company’s 401(k) plan

The above financial considerations are outside of traditional investment portfolios, but they are increasingly coming into focus for people who want to achieve greater impact with their money. How do you invest for impact beyond traditional portfolios? Our colleagues at Wetherby Asset Management recently researched what is possible. It’s a great, informative read found here on the Wetherby website. 

Some interesting data points:

— 529 Plan administrators are increasingly offering robust impact investment options. At least 15 plans recently included funds that integrate environmental, social or governance criteria (as of June 2020).

— Many 401(k)s now have enhanced impact options available, and if not, you can advocate for them to be added as a way to attract and retain employees who value impact.

— Via a DAF, you can contribute tax-qualified donations into a managed investment account to be later granted to eligible nonprofit organizations of your choice.

— Three major US banks — JPMorgan, Citigroup Inc. and Bank of America Corp. — were the top funders of worldwide fossil fuel expansion from 2016 to 2020.