Active or impact investing is a valid question, since it often requires a long time to reach shareholder impact. Passive or impact investing is an equally valid question, because passive investors do not want or do not have the resources to impact their investments.
With impact investments, investors try to improve the world. Investing in listed securities does not add capital for the issuers. Therefore, responsible investors typically use voting and engagement to try to improve issuers of securities.
I advise a rules-based mutual fund with a very high active share. Here are some of my shareholder engagement experiences and learnings:
My goal: 100% Engagement
With my mutual fund, I invest in only 30 stocks (see 30 stocks, if responsible, are all I need). According to my definition, they are issued by the most responsible listed companies worldwide (see Artikel 9 Fonds: Kleine Änderungen mit großen Wirkungen?). In 2022, I was positively surprised by my first shareholder engagement test (see Engagement test (Blogposting #300)). Since I try to invest as responsibly as possible, I decided to try to engage with all 30 companies in my portfolio.
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