b'FOR YOUR PRACTICEJeffrey E. Wherry, CFPContributed by Impact Investing: 101 , CLU, ChFC Director of Research and PlanningWhat it means to invest in your values.Treloar & Heisel Wealth Management www.treloaronline.comMore and more, investment managers are being called on to provide deeper insight into the companies they select for inclusion in their portfolios. Consumers are increasingly educated, attuned to, and careful about the corporate practices of the companies in which they are invested. People want to feel good about where they put their money, and for many people that means that their investments need to align with their personal values. In our practice, we see an increasing interest in portfolios that are designed to fit with what The big investmentclients care about most in their lives. There are many terms used to define an investment philosophy that has firms and pensionpositive social impact. What used to be called socially responsible investing has evolved over the years; no longer is it just about avoiding sin stocks like plans that fundalcohol, tobacco, firearms, or pornography. The term we use in our practice is impact investing, and it refers to an investment strategy that seeks to create companies arepositive financial outcomes, and also keeps the investors conscience in mind. Impact investing may include but is not limited to the energy sector, healthcare, showing greatereducation, and agriculture. Impact investing looks both at what a company sells, and, more importantly, engagement inat how it goes about doing business. Investment managers will look at a companys governance practices, gender and racial diversity, whether the companies to helpcompany is a good environmental citizen or not, its human rights practices, the composition of the board of directors, and so on. A wide range of criteria is them meet impact- used to assess the companys social impact. investing criteria. There is some research that indicates that companies that are concerned with having a positive social impact tend to outperform companies that dont.AAP Periospectives| 26102378_AAOP.indd26 3/18/212:36 PM'