Impact investing can work within the confines of the Uniform Prudent Investor Act (UPIA) as long as the trustee utilizes an environmental, social, or governance integration process that mirrors traditional fiduciary investments relating to fees, returns, and diversification. Other forms of impact investing may be acceptable from a fiduciary perspective but should be evaluated in the context of the particular strategy at issue. Given the comments to UPIA §5, however, a trustee may wish to consider tailored provisions that authorize impact investing or procure consents and then seek to partner with a firm having an established and clearly detailed impact process.
See Casey C. Clark & Andy Kirkpatrick, Impact Investing Under the Uniform Prudent Investor Act, Probate and Property Magazine, March 2018.
