G. Benjamin Bingham (United States of America)
Founder and CEO - 3Sisters Sustainable Management LLC
3Sisters - Performance, Strategy and Symbiosis
Taking a holistic approach to positive impact portfolio management, advisors should expect to get a variety of performances in relation to risk/strategy in the various asset classes. The combination of these strategies provides the overall return.
For example, 2-3% return on relatively liquid cash invested in a microfinance bond ladder already skews the overall profile, improving returns and perhaps allowing for less risk in other areas. Again, venture debt in private social enterprises or other co-lending with well-established partners may provide sufficient returns to reduce the proportion dedicated to riskier equity investments. Likewise fixed returns for project finance may provide the kind of returns historically expected of equities. The constricted universe of public equities moving at more and more accelerated rates due to high speed computer trading begs the question of risk/reward and whether or not long term investing can work in a sufficiently manageable way. Deep knowledge of each position seems to be essential for outperformance. Private equity impact investing is for specialists and in order to get best results, this is a time for fund of fund strategies to provide the kind of expertise in each area that impact investing requires.
Finding the appropriate symbiosis for each client should be each gatekeeper’s goal.