Transformative Investing in Bonds — Targeted Re-investment
Some people prefer to invest in bonds instead of stocks, especially if they are investing for a shorter time period. A bond is a loan to a company. An investor who owns bonds issued by an environmentally harmful company can divest by selling them on the open market. The investor then can buy shares in a transformative green-bond mutual fund. This fund buys bonds that are specifically designated to support environmentally beneficial work. Examples would be bonds that finance the ownership and operation of a wind farm in Kenya, or that provide a loan for installation of a large water filtration system, or that support a company that manufactures a solar roofing product. In summary, a transformative bond fund is a purpose-targeted fund.
A transformative bond fund is a purpose-targeted fund.