Download FAQ: Impact Investing

FAQ: Impact Investing
www.SerenityShares.com
What is Impact Investing?
According to the Global Impact Investing Network, it is “investments made into companies, organizations,
and funds with the intention to generate social and environmental impact alongside a financial return.”
Why is Impact Investing Important?
The philosophy is that as we invest, we should take a longer view and provide capital to areas that address
the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy,
conservation, affordable and accessible basic services including housing, healthcare, and education.
Who Makes Impact Investments?
Pension funds, private foundations, insurance firms, family offices, banks, and individual investors.
How Does Impact Differ from ESG Investing?
Funds that offer environmental, social, and governance (ESG) products typically assign an ESG rating/
score to firms depending on a number of subjective factors and/or negative screens. Since there is no
accepted definition for ESG, depending on the values imposed by the rating and screening methodology,
investments can produce dramatically varied results. Impact, on the other hand, does not rely on these
subjective ratios. Company inclusion is based on the firm’s products and services and the perceived or
defined benefit of their actions.
Why is ICAN Important?
• Historically impact investing has been through private equity or by purchasing targeted bonds.
• There is difficulty exiting private investments.
• Research cites a shortage of high quality impact investment opportunities across the risk/return spectrum.
• “ICAN”, using an ETF structure, opens up impact investing in public companies in a liquid and
transparent manner.
How Big is the Impact Market?
• Hard to quantify due to varying definitions
• Nearly $7 Trillion in US domiciled assets employ at least one socially responsible investment strategy, up
40% from $3.7 trillion in 2012 – USSIF report on US Sustainable Responsible and Impact Investing Trends.
• By 2020, 5-10% of all portfolios will be impact investments – JP Morgan / GIIN
• $300+ Billion in philanthropic funding could be re-directed to impact investments – [Aug 2016, ImpactUs,
Impact/SRI & ESG Investing Conference, Denver]
2 Wisconsin Circle, Suite 700, Chevy Chase, MD 20815 • Tel: 202 349-3917 • www.serenityshares.com
Disclosures
Carefully consider the Funds investment objectives, risks, charges, and expenses before investing. This and
additional information can be found in the statutory and summary prospectus, which may be obtained by calling
202-349-3917 or visiting www.serenityshares.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. The fund is new with limited operating history. Shares of any ETF are
bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund.
Brokerage commissions will reduce returns. Because the methodology of the Index selects securities of issuers for non-financial
reasons, the Fund may underperform the broader equity market or other funds that do not utilize impact criteria when selecting
investments. The Fund may invest in foreign securities which involve political, economic and currency risks, greater volatility and
differences in accounting methods. The Fund may invest in smaller companies, which involve additional risks such as limited liquidity
and greater volatility than large cap companies. To the extent the Fund invests more heavily in particular sectors of the economy, its
performance will be especially sensitive to developments that significantly affect those sectors, including investments in Industrials and
Technology sectors.
The SSI Impact Index employs a passive methodology designed to measure the performance of a diversified portfolio of U.S.-listed companies
that operate in areas that address a variety of society, social, and environmental challenges. These include environmental stewardship, local
access to healthcare, renewable energy, clean water, community building, access to information, natural organic foods, eldercare, and green
technologies. It is not possible to invest directly in an index.
The SerenityShares Impact ETF is distributed by Quasar Distributors, LLC.
2 Wisconsin Circle, Suite 700, Chevy Chase, MD 20815 • Tel: 202 349-3917 • www.serenityshares.com