Investing in Social Impact Funds

I have just returned from visiting my daughter who lives in Sierra Leone. It’s a fantastic country which is both chaotic and beautiful, contrasting polluted Freetown with beaches which would give any Caribbean island a run for its money!

Of course the tragedy is the level of poverty which is so prevalent. It’s a country which desperately needs major investment but whilst it continues to struggle with institutional corruption, it is difficult to see speedy progress.

Some of Trinity Wealth Managements philanthropic endeavours are directed towards Sierra Leone and in particular the work of an excellent charity called Home Leone. I made a couple of videos giving updates on the Destiny village project and please do click on the link below to view them.

It is always encouraging for our advisers when they see acts of charitable giving as part of a clients financial planning, but for most people their investments (including their pensions) are understandably a much larger capital sum than they will ever dream of giving away.

This is why Social impact investing is so exciting. Pensions or ISAs can be invested into regulated funds which have the specific mandate of investing in companies who are looking to make a measurable positive impact on society or the environment. The impact is measured against the 17 United Nations Sustainable Development Goals.

As an example, one company held by one of the funds we favour is Evoqua Water Technologies which is a water technology company with a sole focus on water treatment. Its core technologies are focused on purification; removing impurities from water, rather than neutralising them through the addition of chemicals.

This impact feeds directly into the UN SDG ‘Clean water and sanitation’.

However, impact funds often also have some surprisingly familiar names such as Adidas which is one of the world’s largest suppliers of shoes and clothing. In addition to products that support and encourage active lifestyles, Adidas is a leader in sustainable manufacturing and, in particular, driving the circular economy. Examples include utilising ocean plastics in products and producing 100% recyclable shoes. The company’s sustainability approach spans from how sporting goods are made and sold, to where sport is played.

Other companies such as Adobe, Mastercard, Nike and Nintendo also can be found as they are producing a measurable social impact.

Not all of ones savings need to be invested into Social impact funds, but for many of our clients we are finding that they are wanting to divert some of their capital into companies which are making a positive difference. We are happy to advise them!


Jon Cobb
Director, Trinity Wealth Management