A new report from the MaRS Centre for Impact Investing calls on financial advisors to get involved in exposing clients to opportunities for investments that aim to produce a social return along with a financial one.
The organization released a report Tuesday, along with Purpose Capital that examines the environment for impact investing, and makes a series of recommendations for boosting interest and activity in the social investing space.
For financial advisors and planners, the report notes that “there are encouraging signs of latent interest among retail investors”, but that the level of awareness and investment activity is relatively low among these investors. So, it calls on advisors and planners to help clients understand where impact investing may be appropriate, “so that clients are able to plan, invest and live in a manner consistent with their values.”
It also suggests that advisors look for latent demand for impact investing among clients through awareness and education campaigns, particularly targeting younger investors “who seem to be open to investing in this manner.”
Additionally, the report recommends that advisors help provide product options that are comparable to mainstream offerings; and that they help build awareness for the sector through education and industry events. It also makes recommendations for various other players in the sector, including institutional investors, asset managers, financial firms, and governments.
MaRS also announced that its crowdfunding platform, known as SVX — which was granted an exemption by securities regulators last year, in advance of regulatory accommodations for any other form equity crowdfunding — has raised $650,000 in financing since it began operations in September 2013. The SVX is the first registered impact investing platform in North America.
“These first investments and commitments demonstrate real momentum for the impact investing marketplace in Canada, with new investors and capital mobilized to tackle our most pressing problems,” said Adam Spence, associate director, MaRS Centre for Impact Investing and founder, SVX.