$60 billion impact investing industry becomes mainstream

funds-management/investment-management/impact-investing/Millennials/value-investing/

7 November 2016
| By Anonymous (not verified) |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND