Impact investing has increasingly become a mainstream investment strategy and, according to Standard Life Investments, this is a trend that is likely to continue.
Standard Life Investments cited recent data from the Global Impact Investing Network that $60 billion flowed in to impact investing globally in 2015, and said this is likely to reach $1 trillion by 2020 according to JP Morgan.
The company said this growth was likely driven by the Millennial generation (between the ages of 18 and 34) who, according to data from a Morgan Stanley survey, are twice as likely to invest in companies with positive environmental or social impacts.
“The case for impact investing is strong,” said Standard Life Investments head of responsible investment Amanda Young.
“It represents a tangible way for socially and environmentally aware investors to deploy their capital in a manner that meets their environmental, social and financial goals.”
Ms Young said the impact investing industry will “no doubt see a wider range of investment vehicles, as well as more diverse impact targets” as the industry moves forward.
“Our research highlights that we expect demand for socially responsible, values-based investments to continue to grow, particularly among Millennials. For asset managers and advisers that embrace impact investing and offer suitable products to cater for this market, the future looks bright,” she said.
Danish fund manager Global Evolution recently said impact investing could be used to help alleviate global poverty by “building human capital and physical infrastructure” in countries where this kind of investment is needed.
Anyone expecting an RBA rate cut to trigger a repeat of the six-year property boom we experienced from 2011 needs to think again, according ...
The Reserve Bank has warned of negative equity risks among off-the-plan property buyers and the broader economic consequences of a supply gl...
Australian asset managers will be aggressively buying yield assets as the US Federal Reserve has delayed further interest rate increases for...