Podcast
Questions and Answers
What do Christian investors typically avoid when selecting investment firms?
What do Christian investors typically avoid when selecting investment firms?
Which of the following restrictions is NOT typically imposed by Islamic investors?
Which of the following restrictions is NOT typically imposed by Islamic investors?
Which aspect of corporate responsibility is prioritized by Christian investors?
Which aspect of corporate responsibility is prioritized by Christian investors?
In the context of ethical investment strategies, which activity do Shari’a-compliant investors specifically restrict?
In the context of ethical investment strategies, which activity do Shari’a-compliant investors specifically restrict?
Signup and view all the answers
The Triple Bottom Line approach emphasizes which of the following aspects?
The Triple Bottom Line approach emphasizes which of the following aspects?
Signup and view all the answers
What does responsible investment aim to mitigate?
What does responsible investment aim to mitigate?
Signup and view all the answers
Which of the following best describes socially responsible investment (SRI)?
Which of the following best describes socially responsible investment (SRI)?
Signup and view all the answers
How can responsible investment impact financial stability?
How can responsible investment impact financial stability?
Signup and view all the answers
Which investment approach can be combined with socially responsible investment?
Which investment approach can be combined with socially responsible investment?
Signup and view all the answers
What is a hurdle in the context of socially responsible investment?
What is a hurdle in the context of socially responsible investment?
Signup and view all the answers
What is one objective of ethical investment strategies?
What is one objective of ethical investment strategies?
Signup and view all the answers
What can result from investments that consider ESG factors?
What can result from investments that consider ESG factors?
Signup and view all the answers
Which of the following describes the relationship between responsible investment and active ownership?
Which of the following describes the relationship between responsible investment and active ownership?
Signup and view all the answers
What is a common objective for investors in impact investing?
What is a common objective for investors in impact investing?
Signup and view all the answers
Which of the following is NOT typically excluded in ethical or faith-based investments?
Which of the following is NOT typically excluded in ethical or faith-based investments?
Signup and view all the answers
What role does shareholder activism play in faith-based investment?
What role does shareholder activism play in faith-based investment?
Signup and view all the answers
The Global Impact Investing Network's 2019 survey estimated which approximate market size for impact investing?
The Global Impact Investing Network's 2019 survey estimated which approximate market size for impact investing?
Signup and view all the answers
Which of the following strategies is a common focus of ethical investment?
Which of the following strategies is a common focus of ethical investment?
Signup and view all the answers
What is a common negative screening criterion in ethical investments?
What is a common negative screening criterion in ethical investments?
Signup and view all the answers
Why might some impact investors intentionally invest for below-market-rate returns?
Why might some impact investors intentionally invest for below-market-rate returns?
Signup and view all the answers
Which principle is commonly employed in ethical investing to guide investment decisions?
Which principle is commonly employed in ethical investing to guide investment decisions?
Signup and view all the answers
Study Notes
Impact Investing
- Impact investing involves investments aimed at generating measurable social and environmental impact alongside financial returns.
- The global impact investing market is estimated at US$502 billion as of recent data.
- 66% of investors in impact investing pursue competitive, market-rate returns.
Ethical and Faith-Based Investment
- Ethical investments align with specific principles, often employing negative screening to exclude morally objectionable companies.
- Common exclusions include:
- Tobacco
- Alcohol
- Pornography
- Weapons
- Exclusions may also relate to violations of international human rights standards.
- Faith-based investors, including religious organizations, often engage in shareholder activism to influence corporate conduct.
Christian Investment Guidelines
- Christian investors avoid:
- Companies facilitating abortion or contraceptives
- Companies involved in embryonic stem cell research
- Firms in the weapons industry
- Preference is given to companies that promote human rights, environmental stewardship, and fair labor practices.
Shari’a Compliance
- Investors following Islamic principles refrain from investing in:
- Alcohol, pornography, and gambling-related businesses
- Companies that earn significant revenue from interest
- Pork-related businesses.
Responsible Investment
- Responsible investment incorporates ESG (Environmental, Social, and Governance) factors into investment decisions and active ownership practices.
- It aims to mitigate risky ESG practices, protect investment value, and enhance societal and environmental outcomes.
- Responsible investment strategies can be combined within a portfolio, allowing for a diversified approach.
Socially Responsible Investment (SRI)
- SRI utilizes social and environmental criteria for evaluating potential investments.
- Companies are scored based on specific criteria relevant to sectors, often establishing hurdles for eligibility within the investment universe.
- SRI can be paired with strategies such as best-in-class investment, thematic funds, or high-conviction investment strategies.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the fundamentals of impact investing, its market size, and the objectives of various investors. This quiz covers insights from the Global Impact Investing Network (GIIN) and discusses the balance between market-rate returns and strategic investment goals.
