Where Impact Hides in Plain Sight: Rethinking Cash and Fixed Income
Current 21 - Insights
When people think about impact investing, the conversation often skips straight to the flashier parts of a portfolio—private equity, climate tech, or early-stage innovation. But some of the most overlooked asset classes—cash and fixed income—can play a pivotal role in addressing systemic issues.
These assets are usually seen as purely functional: preserve capital, manage volatility, provide liquidity. But when you look more closely, they’re also incredibly powerful tools for impact—if we choose to be intentional with them.
Fixed Income: Digging Deeper Than Credit Ratings
Take bonds, for example. At Align, we work with a preferred partner who goes beyond traditional credit analysis. They don’t just evaluate who they’re lending to—they dig deeper into what those borrowers are funding. This level of scrutiny makes a real difference.
It means we can see whether a municipality is using the funds to build affordable housing, upgrade water infrastructure, or invest in public education—or whether it’s financing something the investor doesn’t align with. The context behind the capital matters, and this kind of transparency gives our clients a clearer view of the impact their fixed income allocations are having.
This is the kind of rigor that brings purpose and alignment to the parts of the portfolio we usually don’t question.
Cash: Not Idle, Just Unexamined
And then there’s cash. It’s easy to think of cash as neutral, as if it’s just sitting there. But wherever you park your cash, it’s not idle—it’s being lent out. The only real question is: to whom?
Are your dollars supporting extractive industries and speculative real estate, or are they being channeled into underserved communities and affordable housing projects?
We help clients place cash in mission-aligned banks and credit unions—places where their deposits are used to fund community development, small businesses, and housing for low-income families. It’s a small shift with outsized ripple effects.
Rethinking Safety
For many investors, these allocations are about playing it safe. But what if we redefined safety? What if safety meant building systems that are resilient and inclusive over the long term—not just protecting ourselves from short-term market swings?
When we take the time to realign even the most stable parts of a portfolio, we’re not just checking a box. We’re participating in the kind of systemic change that often starts in the background, then ripples outward.
An Invitation
If you’ve already allocated cash or bonds, you’re already making choices. This isn’t about doing more—it’s about doing with intention.
Let’s look again at those parts of the portfolio that feel routine. Because sometimes, the most meaningful opportunities for alignment are already there. We just need to pay attention.
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The information presented in this newsletter is the opinion of Align Impact, LLC and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. Past performance is no guarantee of future performance. Align Impact, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission.
