Impact investing has gained considerable attention and prominence over the last few years in New Zealand. This is not surprising. It is easy to like the idea of having a positive impact on society while making money at the same time. However, things are not always as simple and clear cut as interested investors would probably like.

This paper discusses and provides practical examples on the following areas:

• What is impact investing?
• Where should impact investments sit in your portfolio?
• Modelling impact investment risk and return
• Case study – Impact investment loans
• A portfolio perspective – how to benchmark impact