Guide to Giving
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  Corporate Engagement, Finance, Good Business, Philanthropy, Social Innovation

Impact Investors Commit More in 2015


Wednesday, 6th May 2015 at 9:15 am
Lina Caneva, Editor
Impact Investors plan to commit 16 per cent more finance to impact investment in 2015, according to a major global benchmarking survey.

Wednesday, 6th May 2015
at 9:15 am
Lina Caneva, Editor


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Impact Investors Commit More in 2015
Wednesday, 6th May 2015 at 9:15 am

Impact Investors plan to commit 16 per cent more finance to impact investment in 2015, according to a major global benchmarking survey.

Eyes on the Horizon, the 2015 edition of the annual impact investor survey run by the Not for Profit Global Impact Investment Network and investment bank J.P. Morgan, reveals a growing global market, with impact investments being made across all geographies and a range of sectors.

The survey gathered the views of 146 of the world’s largest impact investors, including fund managers, banks, development finance institutions, foundations, and pension funds, who report having committed $10.6 billion to impact investments in 2014, with plans to commit 16 per cent more in 2015.

Respondents, who collectively manage over $60 billion in impact investment assets, indicated satisfaction with both financial returns and social/environmental impact performance, compared to expectations.

Eyes on the Horizon is the fifth in a series of reports, started in 2010, that present perceptions of the impact investment market as well as portfolio performance from a sample of impact investors.

“Having surveyed the market for the past five years, we certainly are inspired by the growth in investments as well as the sample of exits we captured. Over time, the universe of investors and their approaches to the market have continued to expand, most recently with increased engagement from the corporate sector,” Report co-author and Director of Research for J.P. Morgan Social Finance Yasemin Saltuk said.

“In the face of increasing competition, we hope this research serves the market in developing a pipeline of high quality deals going forward.”

Amit Bouri, CEO at the GIIN and co-author of the report said the GIIN was encouraged to see continued investor confidence in the market and that investments are delivering results.

“The most comprehensive study of impact investing activities and investor experiences, this research continues to underscore an increasingly more sophisticated and growing market that includes a diversity of investors and investment opportunities,” he said.  

Impact investments are investments that are made into companies, organisations, and funds with the intention to generate social and environmental impact alongside a financial return.

They can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances.  

Among the key findings:

Asset allocations

• Collectively, respondents manage $60 billion in impact investments

• The regions to which the largest number of investors plan to increase their allocations are sub-Saharan Africa, followed by East and Southeast Asia, and Latin America & the Caribbean

• The sectors to which the largest number of respondents plan to increase their allocations are Energy, Food & Agriculture, and Healthcare

Performance

• Survey participants reported that their portfolios are performing mostly in line with both their impact expectations and financial return expectations

• 98 per cent of respondents reported social and/or environmental impact outperforming or in line with their expectations

• 89 per cent of respondents reported no significant risk events in 2014

Respondent perspectives on the last five years

• The majority agree that impact measurement practice has improved (77 per cent)

• Governments are playing a more active role (67 per cent)

• The quality of entrepreneurs/investment opportunities has improved (64 per cent)

Impact measurement

• 99 per cent of respondents measure the social/environmental performance of their investments, with the majority aligning with IRIS, the online catalog of generally accepted performance metrics that leading impact investors use to measure social, environmental, and financial performance

• The business value of impact performance measurement for improving financial performance of portfolio companies and informing future investments is ‘very important’ to 65 per cent of respondents

Click here to download the report


Lina Caneva  |  Editor |  @ProBonoNews

Lina Caneva has been a journalist for more than 35 years, and Editor of Pro Bono Australia News since it was founded in 2000.

Guide to Giving

FEATURED SUPPLIERS


Brennan IT helps not-for-profit (NFP) organisations drive gr...

Brennan IT

Yes we’re lawyers, but we do a lot more....

Moores

...


HLB Mann Judd is a specialist Accounting and Advisory firm t...

HLB Mann Judd

More Suppliers

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Thinkers Look to Melbourne to Grow SA Purpose Economy

Wendy Williams

Thursday, 21st September 2017 at 4:44 pm

$2 Million Grant Helps Give Australians in Need A Fair Go

Wendy Williams

Thursday, 21st September 2017 at 8:35 am

NFPs Need Social Media More Than They Know

Alecia Hancock

Thursday, 21st September 2017 at 8:33 am

Volunteering Tasmania Forced to Close Launceston Office

Luke Michael

Thursday, 21st September 2017 at 8:25 am

POPULAR

Moves to Stop Volunteering at Overseas Orphanages

Luke Michael

Wednesday, 13th September 2017 at 1:54 pm

Future Uncertain for Disability Organisations Following Funding Cuts

Wendy Williams

Tuesday, 19th September 2017 at 8:29 am

Majority of NFPs Are Not Believed to be Well-Run, According to New Survey

Luke Michael

Tuesday, 12th September 2017 at 4:14 pm

More Australians Are Giving Time Not Money

Wendy Williams

Monday, 11th September 2017 at 5:07 pm

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


Guide to Giving
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!