Impact Investing

Impact Investing
13 Jul 2016

What is it and should you do it?

Years ago, “Impact Investing” was referred to as “Socially Responsible” and over the years has become very popular. There are two questions with this type of investing:

1) Should you invest?

2) Will you make money?

Let’s look at some statistics to help you decide:

• In 2005, there were about 200 such investment vehicles, less than a decade later, that number jumped to nearly 1,000! More is not necessarily better by the way.

• Impact investing has actually outgained the S&P 500 during a 25-year period. From 1990-2014 the Domini 400 (benchmark index for socially responsible sector) yielded an average total return   of 10.46% compared to 9.93% S&P return during the same time

• It’s hard to be 100% socially responsible so don’t expect perfection when you invest

• One out of every sixth invested dollar in America is held in a socially responsible investment strategy

So, the number are compelling. Should you invest? If you are inclined ethically and morally, I see no big concerns. Will you make money? Over the long term this type of strategy appears to be productive but, you should always invest for your unique investment goals, concerns and risk levels (like any investment). If interested please make sure you discuss the pros and cons with your investment professional before you invest! 

Good luck! Jeff


Indices mentioned are unmanaged and cannot be invested into directly. Past performance is not a guarantee of future results. Investing involves risk. Depending on the different types of investments, there may be varying degrees of risk. Socially responsible investing does not guarantee any amount of success. Clients and prospective clients should be prepared to bear investment loss including loss of original principal.



Jeffrey Johnston

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.