For Financial advisors and Money Managers

MMI

Burckart has been working on an impact investing knowledge and outreach effort with the Money Management Institute (MMI), a financial services industry body and network that has been the leading voice for the global financial services organizations that provide advice and professionally-managed solutions to individual and institutional investors. Burckart and the MMI have collaborated to a) develop a strategy for informing MMI’s members about harnessing impact investing and b) amplify, frame, and facilitate the dynamic value proposition to support the growth of impact investing with key stakeholders. Major financial institutions that have collaborated on this body of work include Citigroup, Deutsche Bank, JPMorgan Chase, Morgan Stanley, UBS, and Bank of America Merrill Lynch.


Bringing Impact Investing Down to Earth

Bringing Impact Investing Down to Earth: Insights for Making Sense, Managing Outcomes, and Meeting Client Demand continues a multi-year discussion between the Money Management Institute (MMI) and Burckart Consulting about the emergence of impact investing and the peculiar challenges and opportunities it represents for the financial services industry. The report details the growing client demand for impact investing – the practice of investing with the intention to generate measurable social and environmental impact alongside a financial return – and the obstacles to truly widespread adoption. Chief among these is the need to address issues related to transparency.

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Read the launch op-ed on Quartz: "Impact investing needs a better way to measure impact" 

Also included in the report are essays by leading practitioners who are learning by doing – Erika Karp and John Wilson of Cornerstone Capital Group, Jamie Butterworth of Circularity Capital, Mark Sloss of UBS, and Anna Snider of Merrill Lynch. 

Other outreach in support of this body of work:

  • Will participate on the panel on "Charting a New Path with Millennials: ESG, Impact Investing, and Frontier Markets" at the Money Management Institute's 2015 Fall Solutions Conference on October 21 in New York. Bill will join moderator Anna Snider, the Managing Director and Head of Global Equity Due Diligence for Merrill Lynch Wealth Management and other panelists, including Ron D. Cordes, Executive Co-Chairman, AssetMark; Chuck Knudsen, Vice President, T. Rowe Price; and Jamie Rantanen, Director, Deutsche Bank Private Wealth Management; 

  • Will moderate a webinar with the MMI that asks "Can Client-Facing Advisors and Asset Managers Get on the Same Impact Investing Page?" This webinar will address this divide head-on, examining what clients are really demanding, what advisors must be able to provide, and what asset managers need to know to better position themselves. Jon Hale, Director of Manager Research, North America, Morningstar, Inc., and Mark D. Sloss, Head of Investment Management Models & Portfolios, UBS Wealth Management Americas will join me for this discussion;

  • Coverage in the The Chronicle of Philanthropy in "We Need to Prove Impact Investing Makes a Difference";

  • Coverage in The Guardian in "Impact investing could help plug $2.5tn funding gap for development" by Alison Moodie;

  • Coverage in Quartz in "There's a new industrial revolution underway", with Jamie Butterworth;

  • Coverage in Quartz in "Can capitalism keep people out of prisons?", with Steven Godeke;

  • Coverage in Forbes of Bringing Impact Investing Down to Earth;

  • An interview with FundFire on Bringing Impact Investing Down to Earth;

  • A speech and panel on March 25, 2015 as part of a webinar in partnership with the Clinton Global Initiative (CGI) that served to preview the report, Find more details here. Burckart was joined by Nicholas Salter, Senior Manager for the Clinton Global Initiative; Anna Snider, the Managing Director and Head of Global Equity Due Diligence for Merrill Lynch Wealth Management; and Mark D. Sloss, the Senior Portfolio Manager and Head of Premier Portfolio Services for UBS Wealth Management Americas.


Serving Client Demand for Impact Investing

The special report “Serving Client Demand for Impact Investing: A How-to Guide for Financial Advisors and Senior Management” explores how major financial advisors and institutions are embracing impact investing. It also suggests how they could go further and optimize both the impact and financial proposition of these kinds of investments by venturing to actually align them, making impact both commercially viable and socially transformative. The report provides a status of the impact investing market and unpacks the motivations, dimensions, issues, and opportunities that investors and firms encounter when creating impact investment programs.

Many of the profiled firms are utilizing components of their institutional platforms—using philanthropy, CRA-motivated lending, ESG and SRI, or wealth management to match client demand or meet compliance requirements. For example, major financial service providers such as Citigroup and Goldman Sachs have either launched impact investment or impact-related investment divisions (the term given to practices that are functionally similar to impact investing) to strengthen or meet corporate citizenship and philanthropic mandates, or invested in impact investment projects to diversify wealth or asset management portfolios by gaining exposure to different sectors, populations, and geographies. Within a systems framework, though, integrated impact investment initiatives can develop positive feedback loops with core wealth or asset management practices, irrespective of whether they help to meet philanthropic or compliance mandates. 

This special report arose over the course of a multi-year discussion between MMI and Burckart about the emergence of impact investing and the peculiar challenges and opportunities it represents for financial institutions and investors. This exchange began in October 2012 with an exhibition of Burckart’s impact investing services for attendees at MMI’s Fall Solutions Conference in New York, and was continued with the launch of an Impact Investing Blog on MMI’s website in July 2013. The resulting report also benefited from Burckart's impact investing work and industry expertise, reviews of client mandates, data analysis and desk research, and targeted interviews with leading financial institutions that were initiated in November 2013. The findings were further augmented with baseline data and insights that were generated from a survey that MMI distributed to over 400 senior financial services executives in March 2014.

Other outreach in support of this body of work included: