7th edition of GIIN survey identifies size of impact investment market

Jonathan Boyd
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The seventh edition of the Annual Impact Investor Survey report, published by the Global Impact Investing Network (GIIN), suggests that the $114bn in impact investing assets being managed by the survey’s respondents represents a “best available floor for the size of the…market”.

The data is based on responses from some 209 impact investors globally, who have committed $22.1bn to nearly 8,000 impact investments.

Among the key findings of the research include:

The overwhelming majority of respondents reported that their investments have either met or exceeded their expectations for both impact (98%) and financial performance (91%)

There have been an increasing number of large, well-known asset managers and other financial firms entering the impact investing space

There is increasing abundance of professionals with relevant skillsets (90% noted progress) and greater availability of market research and data on products and performance (89% reported progress)

About 26% of respondents track their impact investment performance to the United Nations Sustainable Development Goals (SDGs) and another 34% plan to do so in the near future

Nearly universally, respondents measure the social and/or environmental performance of their impact investments, using a mix of proprietary metrics, qualitative information, IRIS-aligned metrics, and other tools and frameworks

Top sectors to which respondents allocated capital were housing, energy, and microfinance.

Top geographies of investment were the US & Canada, Europe, sub-Saharan Africa, and Latin America & the Caribbean

Two out of three respondents target risk-adjusted, market rates of return

Just over half of respondents reported that a lack of appropriate capital across the risk/return spectrum remains a significant challenge.

Amit Bouri, GIIN Co-founder and CEO, said: “This year’s annual survey details an impact investing industry that is becoming increasingly established and professionalised, but also a market that is complex and diverse. The findings allow us to dig deeper into the topics the industry will need to concentrate on to further develop the market and achieve the broad global impact we seek.”

The study was produced with support from the UK government through the Department for International Development’s Impact Programme, and the John and Catherine MacArthur Foundation. JP Morgan acted as anchor sponsor.

To read the full report click here: https://thegiin.org/knowledge/publication/annualsurvey2016