When Andy Lower joined the Eleos Foundation as executive director in December 2008, the small, private foundation had a balanced portfolio with Vanguard and was making grants to help eradicate extreme poverty in the developing world. But it was looking to take things up a notch.
Ideas almost always emerge when traditional routes are not enough. One such idea, emerging in our new economy, is a hybrid blend of time-honored philanthropy and investing for financial return called "Impact Investing" — investing to make a difference in the world and make money simultaneously, or "Blended Value."
Not even five years ago, a debate tiptoed into the investing world that pitted do-gooders against bottom-liners: could a responsible, prudent investor – a person acting in a fiduciary role – put weight on environmental, social, and governance factors (ESG) when building a portfolio?
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