$60 billion impact investing industry becomes mainstream
Impact investing or investing to generate a positive, social and environmental impact, has become a mainstream investment choice, and is predicted to become a $1 trillion dollar industry by 2020, according to Standard Life Investments.
The global investment manager's whitepaper found 80 per cent of those who lived in the United Kingdom thought human rights, equality and eradicating poverty were important considerations when investing, while 80 per cent of their surveyed participants also did not want to sacrifice investment performance when they invested into values-based funds.
Those under 40 were also more likely to use values-based investing, and were familiar with the term impact investing.
The report highlighted that in 2015, around $60 million was invested into impact investing around the world. That was tipped to rise to $1 trillion by 2020.
Morgan Stanley said this growth would likely be driven by millennials (18-to-34-year-olds) who wanted socially responsible, values-based investments, as they were twice as likely to invest in portfolios that had positive and environmental or social impacts.
Standard Life Investments' head of responsible investment, Amanda Young, said: "For asset managers and advisers that embrace impact investing and offer suitable products to cater for this market, the future looks bright".
"As we move forward, we will no doubt see a wider range of investment vehicles, as well as more diverse impact targets. Measurement will also become increasingly sophisticated and standardised," she said.
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
