Level: Intermediate

What is impact investing?

If you’re interested in responsible investing, you might have come across the term “impact investing”. Wondering what it is and why we do it? Well, you’ve come to the right place!

What is impact investing, and why does it matter?

At Rest, impact investing forms one part of our overall approach to responsible investing. Impact investments at Rest are those investments made in members’ best financial interest to provide a financial return while also providing a positive and measurable impact to society and/or the environment.

The growing impact investment market provides capital to investments that aim to address pressing challenges across the world in sectors such as sustainable agriculture, renewable energy, conservation, and affordable services like housing, healthcare, and education.

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Rest is targeting a 1% allocation of its total funds under management to impact-generating investments by 2026. This is because we believe that impact investing adds value and can contribute to a more sustainable future.

Rest’s impact investments to date

At the end of 2022, Rest invested in the infrastructure-based Palisade Impact Fund – our first impact investment.

Palisade Impact focuses on assets that target and contribute to practical solutions to social disadvantage and climate change by investing in next-generation infrastructure and businesses that provide essential services to support the future economy.

Since then, we’ve continued to invest in a range of impact investments across different asset classes, including:

  • ARCHIMED, a healthcare-focused private equity manager
  • Ninety One, a global shares investment manager that invests in companies that are expected to contribute to the transition to a lower-carbon global economy
  • CIBUS, a sustainable agriculture-focused manager in the alternatives asset class, and
  • Fidelity LOGICs fund, which acquires logistics properties across Western Europe to redevelop into high-quality, net-zero carbon industrial assets.

Why impact investing is important to us

At Rest, we believe that significant investment is required to address the scale of climate change and energy transition and that the road to net zero creates investment opportunities. We are proud to invest with impact to play a role in protecting sustainable and strong long-term returns.

Although impact investments have the potential to deliver broader benefits, it’s important to remember that the financial return of an investment remains the priority for Rest.

We aim to maximise your personal best retirement outcome by investing in high-quality assets and focusing on long-term results, by growing your super savings in a responsible and beneficial way. 

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