According to the Global Impact Investing Network, it is “investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return.”
To provide capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, affordable and accessible basic services including housing, healthcare, and education.
The philosophy is that as we invest, we should take a longer view and do so in companies that benefit society and the planet.
Pension funds, private foundations, insurance firms, family offices, banks, and individual investors.
Funds that offer environmental, social, and governance (ESG) products typically assign an ESG rating/score to firms based on multiple factors. As there is no accepted definition for ESG, ratings can vary significantly depending on the methodology employed. A company can have a high ESG rating but not be seen as really making a difference. The SerenityShares' vision of impact investing starts with 20 societal, social, and environmental challenges and identifies companies which generate revenues from supplying products or services “targeting” these impact activities. Click here to see the 20 challenges.
The most recent figure from the US Forum on Sustainable and Responsible Investment (US SIF) puts total SRI assets at $8.7 Trillion globally.
There was a need for a product that could meet the investable, liquid, transparent requirements sought by institutional investors while enabling individuals to more easily access investments in this area, thus democratizing impact investing among investors of all sizes.
Most impact investments historically have been through private equity or by purchasing targeted bonds. Institutional investors have noted a shortage of high quality investment opportunities across the risk/return spectrum--especially in public equity; along with difficulty in exiting private investments. ICAN, using an ETF structure, opens up impact investing to all types and levels of investors and in a liquid and transparent manner.
Beginning with a list of 6500+ companies listed on the NYSE and NASDAQ, we identify firms whose activities have a direct beneficial impact to the societal, social, and environmental challenges we’ve identified. This includes eliminating firms involved with tobacco; weapons; and fossil fuel exploration and production. We then screen the resulting universe for market cap, price, and liquidity to come up with our investable list. For more information, please read the prospectus or visit our underlying index provider’s website at http://impactindexsolutions.com
After extensive research including a detailed review of the UN Sustainable Development Goals and other studies, SerenityShares identified 20 challenges impacting society and the environment that public equity investments could target. It is a diverse group of sectors from renewable energy to elder care. Click here to see our infographic.
As the index is passive, we did not technically choose any companies, these were the ones that resulted from our analysis. We recognize that the notion of “good” is subjective so we made available an explanation for each included firm. Click here to see their inclusion rationale.
The index is reviewed annually and rebalanced quarterly.
The UN SDGs were developed to define 17 bold, brash challenges facing the world from solving poverty to clean water to well-paying jobs and to track and identify where and how resources from government, charity, and public and private sources were being allocated. SerenityShares’ list of challenges reflect and identify investable areas, most of which are aligned with the SDGs. [Click her for a comparison]
SerenityShares ETFs are listed on the NYSE Arca, and trade in a similar way that shares of publicly traded companies do. Investors can buy and sell SerenityShares ETFs through traditional brokerage accounts using the ticker, ISIN, or CUSIP identifier during normal NYSE exchange trading hours.
Investors can purchase as little as a single share from their broker for the price of a dinner out.
The Fund pays out dividends, if any, from their net investment income, on a quarterly basis. Our first dividend was paid in September 2017.
Capital gains, if any, would be distributed annually.
This is a question for your broker. Brokers may make dividend reinvestment services available to their customers.
ETFs that track a passive index are less likely to realize capital gains that must be paid to investors on an annual basis. The creation / redemption process leads to in-kind transactions, the result of which is a non-taxable event for the fund. Additionally, passive indexes tend to have lower portfolio turnover, and are therefore less likely to realize capital gains. Since SerenityShares ETFs are new, there is no history of distributions.
Your broker will provide a 1099.