Updated: Sep 28, 2017
Global Impact Investing Network (2017): Click here to read the report.
This report presents findings from the seventh Annual Impact Investor Survey. The findings include investors’ perspectives on key issues important to the development of the impact investing industry, as well as analysis of their investment activity, asset allocations, impact measurement practice, and performance.
The survey captures the activity and perspectives of 209 respondents making impact investments around the world.
In 2016, respondents saw progress in key indicators of industry growth, such as the availability of qualified professionals, data on products and performance, and high-quality investment opportunities.
They also continued to face challenges related to availability of appropriate capital of different types and a lack of shared vocabulary to define and segment the industry.
In aggregate, 205 respondents invested USD 22.1 billion into nearly 8,000 impact investments in 2016 and plan to increase capital invested by 17% to USD 25.9 billion in 2017.
In total, 208 respondents currently manage USD 114 billion in impact investing assets.
Nearly universally, respondents measure their social and/or environmental performance, using a mix of proprietary metrics, qualitative information, and IRIS-aligned metrics.
The overwhelming majority of respondents reported that their investments have either met or exceeded their expectations for both impact (98%) and financial performance (91%).
While two out of three respondents principally target risk-adjusted, market rates of return, there is widespread acknowledgement of the important role played by below-market-rate-seeking capital in the market.
The majority of respondents believe the entry of large-scale financial firms into impact investing will professionalise the market and bring in much-needed capital, but most also believe there is a risk of mission drift or impact dilution associated with this trend.