The Impact Investing Institute's impact guide for wealth managers
- Steven Owen
- 3 minutes ago
- 3 min read
The UK-based Impact Investing Institute recently published a guide for wealth managers seeking to support values-oriented clients with impact investments. This guide, written for wealth managers growing their impact business, will be of interest to values investors - and by extension, faith-based asset owners - as it provides insights to the state of impact investing in the UK and by extension, the growing potential for opportunities to express faith-based values in portfolios.
This guide was produced with support from Schroders to support wealth management professionals across the UK to understand the value that impact investing could bring to their firm and to provide guidance as they get started or look to further develop their impact offerings.
The stated goal of document is to guide wealth managers to better assess the long-term opportunity impact investing presents and to support an increased rate of adoption of impact investing across this industry, 'channeling more capital to help solve the world’s most pressing social and environmental challenges, and ultimately help clients who want to align their wealth with their values'.
The report suggests that impact investing presents a major growth opportunity in the UK, one that is currently at an early stage: while 85% of their wealth manager survey respondents have a sustainable investment offering (i.e., approaches based on ESG metrics or the SDGs), only 33% actually provide an impact offering. If wealth managers perceive growing demand for impact generally, this may translate to greater access to a wider range of impact projects for values-investors - and FBAOs. And, although faith-based investors are not explicitly cited as potential investors in the guide, they (you!) certainly represent a significant investing constituency of values-based investors.
It does appear that demand for impact products is growing: survey respondents reported a notable increase in interest for sustainable and impact investments over 2020 to 2025, with 86.7% of firms reporting some level of increase. Further, the guide states, 'a rapidly expanding universe of impact-focused investment products now makes it easier than ever to respond to this interest'.
The guide also provides a summary of investment-related benefits of impact investing that 'go far beyond aligning with the goals of values-driven clients'. Benefits cited include improved portfolio diversification, lower overall volatility and the ability to reduce the effect of negative externalities. Such benefits can help FBAOs make the case for impact investing from a fiduciary standpoint.
The guide also presents wealth managers with a strong strategic long-term case for growing their impact investing capabilities: to future-proof the business against long-term market shifts – particularly the generational transfer of wealth. 'By developing expertise now, wealth managers can position themselves to remain relevant as client expectations evolve. Research consistently highlights a generational divide in investment preferences. Younger investors are far more likely to seek values-aligned investment strategies – and this preference is only growing'.
So, with wealth managers seeing a business incentive to provide more impact products, values-investors having increased access to these products, and a younger generation poised to take impact investing to new levels, the prospects for values-based investing are strong.
FBAOs should ask: is impact investing part of my organisation's faith-consistent investment policy and guidelines statement? One easy way to find out is to contact FaithInvest for an investment policy and guidelines review, starting with a FCI assessment: we're here to help!
FaithInvest is an international nonprofit organisation that empowers faith groups to invest in line with their beliefs and values. FaithInvest is not authorised by the Financial Conduct Authority and does not provide financial or investment advice. Information provided on FaithInvest’s website or its other communication channels does not constitute financial or investment advice. If you wish to receive any form of financial or investment advice, please consult a qualified and independent financial advisor. You should conduct your own due diligence in relation to any investment opportunities or strategies you choose to pursue. FaithInvest does not promote any specific investments or opportunities and cannot therefore accept responsibility for any specific financial or investment decisions you make following participation on its website platform. For more information please visit FaithInvest.org.
