Family Offices Increase Allocations to Impact Investments

Family Offices Increase Allocations to Impact Investments

Palm Beach, FL – (May 20, 2021) – Family offices continue to show increased interest in impact investments, according to Family Office Networks, a community of 10,000+ global family offices. According to the Global Impact Investing Network, the $715 billion global impact investing market is gaining momentum, driven by strong interest and awareness in consumer markets.

“The next generation of family leadership is coming into power and their passion for making a difference is fueling a new level of portfolio allocations to impact investments,” said Family Office Networks Founder and Chairman Andrew Schneider.

Julie Cane, CEO and co-founder of Democracy Investments, is one great example of an impact and mission driven asset manager. Her new ETF product tracks the Democracy Investments International Index, which is the first index to re-weight an international equity index towards democracies and away from authoritarians. This is achieved by leveraging their exclusive license of The Economist’s Democracy Index for financial products globally.

Democracy Investments’ first product offering is The Democracy International Fund ETF, which is over weighted in securities in democratic countries that support ideals such as freedom of speech, free and fair elections and civil liberties. Unlike the alternative international equity index products, the product does not passively invest but instead is underweighted in securities in authoritarian countries. Family Offices seeking impact with their investments can align with their values and support companies and economies in democracies while receiving very similar returns to the benchmark that is not weighted for democracy.

“Our goal is to decrease the cost of capital for democracies which can correlate to increased economic growth, and the reverse for authoritarian states. Additionally, by making investment proportional to democracy scores and never dropping investment in a nation to zero, we hope to create a market-based incentive for democratic reforms. Over time, Democracy Investments aims to have high impact and influence capital flows in such a way that will encourage all countries to improve their democracy scores,” said Ms. Cane.

If you are a family office seeking impact investments, please contact [email protected] for more information.

For details on the June 3rd Webinar, click here.

About Family Office Networks

Family Office Networks is the premier global community for families to share information and intelligence. The team works with a select group of top tier investment managers and sponsors who offer substantial families’ access to stellar investment opportunities in areas such as real estate, venture capital, private equity, and hedge funds. In addition, Family Office Networks shares timely thought leadership on topics related to portfolio management, philanthropy, multi-generational wealth management, compliance and regulation, risk management, insurance, training and education. The website is the hub of Family Office Networks with 500,000 users, including 10,000 family offices, and is a go-to resource for news related to family offices.