Goldman Social Impact Case - Article Example

The impact strategies used for the KLF foundation illustrates that these goals can meet effectively with a balanced portfolio to generate social and environmental benefits. The organization is determined to meet its needs by following a return-based impact investment strategy and taking such opportunities to introduce new concepts in turning its assets into impact investments. Some of the strategies employed include investment size and options that involve the implementation of a risk-aware portfolio and pursuance of a broad spectrum of financial and impact goals.

Implementation of an impact alpha ensures the generation of positive effects and advantages through the reduction of overall portfolio volatilities and apprehending alpha through market inadequacies hence capitalizing on long-term social and environmental developments. Impact investments through diversification can address the needs across a spectrum of impact opportunities and financial goals. These then create an offer of less correlated exposures to investors that goes a long way in improving social and environmental conditions at local through to global standards.

Another feature that the foundation’s portfolio depicts across multiple asset classes includes private equity, fixed income, and cash are the focus on sustainable economic development. The KLF’s investment focuses on the provision of clean energy solutions for the less fortunate and needy populations clearly indicate the impact on the social lives of many.