Wednesday, April 19, 2017

Millennial values could boost public sector investment

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In a recent survey, Standard Life Investments reports 65 percent of millennials care more about social and environmental issues than about investment returns. Compare this with less than half of those age 35-to-44 and only one-third of those over age 45. Governing Columnist Justin Marlowe suggests this trend could be a boon for states and localities if they tell their story correctly.  “Impact Investing” involves money that supports organizations working toward things like pay equity, affordable housing, and clean water and it is hitting the mainstream. Impact credit rating agencies tell investors how well an investment aligns with their social impact objectives. Criteria for these ratings include “health, wealth, earth, equity, and trust.” In many cases government bonds must receive four- or five-star ratings to be included in social impact portfolios. This means if local governments can quantify their steps towards improving mobility, affordable living, social services, and environmental sustainability, they could stand to gain a lot.

Read more from Governing.

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