In 2014, [The Center for the Advancement of Social Entrepreneurship (CASE)] had been invited to be part of the United States National Advisory Board on Impact Investing (the NAB). An impressive group of impact investing professionals from industry, philanthropy, government and academia, we had been meeting for nearly a year under the auspices of the Social Impact Investment Taskforce established by the G8. Our purpose: to collect advice and make concrete recommendations for how US policymakers could encourage more impact investing.
To make the effort more concrete the NAB solicited commitments from participants in the investment communities to inject new funds into the impact investment space. By June of 2014, 29 organizations had promised to invest $1.5 billion in new funds.
An assessment 18 months later showed that more than $2.5 billion had been invested by the group of funders.
According to the Global Sustainable Investment Alliance, the global market for impact investing—which it defines narrowly as targeted investments aimed at solving social or environmental problems—has surpassed $109 billion, 26% higher than in 2012. That number is expected to increase to $650 billion by 2020, claims the Calvert Foundation.
The impact investing business, not too long ago a cottage industry with only tiny funds on offer, is increasingly coming to market with more and bulkier impact investing funds, which is changing the industry’s dynamics.Consider the Pax Global Environmental Markets Fund, which has $305 million assets under management in the U.S. and $4.6 billion globally. Its global equity strategy is focused on companies that are efficient with water, waste, and energy, and firms active in sustainable food and agriculture.
There’s a low $1,000 minimum investment at the fund and a 1% management fee; it’s distributed by banks and broker dealers. The fund has earned an average 6.6% annually over the last three years.
An organization called New Philanthropy Capital designed a program that helps investors see the progress of their investments. The program is known as Impact Assurance Classification. It creates reports based on the impact an investor has based on investment, theme, and contribution. This program makes it possible for impact investors to not have to analyze this type of data on their own and for more thorough reports to be created.
The article discusses the experience that a foundation, K.L. Felicitar, has had with this program. Through these reports, the investors, Lisa and Charly Kleissner, have been able to see the effects of their foundation. This includes findings such as the benefits of working through London-based NPC (National Planning Corporation) versus through the United States. They have also been able to see where their investments have gone and how these contributions have benefited different societies.
Read the full article here:
Impact investing pioneers release report to measure impact of portfolio
Matthew Weatherly-White, managing director of the Caprock Group, discusses how families, Individuals, and Private Wealth Advisors use impact investing for social good. The discussion is moderated by Debra Schwartz the MacArthur Foundation’s Director of Impact Investments .
Impact investing, an investment strategy that generates financial returns while directing funds to entities providing goods and services to the poor, is making headway in Latin America, according to an issue brief from Rice University’s Baker Institute for Public Policy.
“Understanding Impact Investing: A Nascent Investment Industry and Its Latin American Trends” outlines challenges and opportunities for the strategy to continue its growth. The brief was authored by Henry Gonzalez, a contributing expert at the institute’s Latin America Initiative. His professional experience spans the sectors of finance, emerging markets, impact investing and political and economic development. He is available to discuss his findings with media.
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