Goldman Social Impact Case – Article Example
The paper "Goldman Social Impact Case" is a marvelous example of an article review on finance and accounting.
Impact investing as expressed by Goldman in the article is a term that refers to the approach of investment that takes into account two objectives: the intention to generate financial returns and to create a purposeful, measurable, positive social or environmental impact (Lai et al., 2013). The impact strategies used for the KLF foundation illustrates that these goals can meet effectively with a balanced portfolio to generate social and environmental benefits.
The organization is determined to meet its needs by following a return-based impact investment strategy and taking such opportunities to introduce new concepts in turning its assets into impact investments. Some of the strategies employed include investment size and options that involve the implementation of a risk-aware portfolio and pursuance of a broad spectrum of financial and impact goals. Implementation of an impact alpha ensures the generation of positive effects and advantages through the reduction of overall portfolio volatilities and apprehending alpha through market inadequacies hence capitalizing on long-term social and environmental developments. Impact investments through diversification can address the needs across a spectrum of impact opportunities and financial goals. These then create an offer of less correlated exposures to investors that goes a long way in improving social and environmental conditions at local through to global standards.
Through the creation of investments based on the positive outcomes, the KL Felicitas Foundation portfolio shows that impact goals can be of great help in the identification of new market opportunities. Markets which could reduce volatility hence resulting in a positive performance across all the sectors and bring about a term impact in improving the human and environmental needs through the provision of easy access to capital. Another feature that the foundation’s portfolio depicts across multiple asset classes includes private equity, fixed income, and cash are the focus on sustainable economic development. The KLF’s investment focuses on the provision of clean energy solutions for the less fortunate and needy populations clearly indicate the impact on the social lives of many.