A new report “from the coalface” of super fund investing has gone some way to quantifying the cost of shonky investment management, with members potentially losing out on hundreds of thousands of dollars.
Surging equity markets have driven the Future Fund’s return higher, but its prediction that inflation will be stickier than expected has been born out and it “remains conscious of the potential for significant deterioration”.
… and impact investing market tops US$500b
The Global Impact Investing Network is today (April 1) releasing its ‘Sizing the Impact Investing Market’ report, an in-depth analysis of the current size and composition of the impact investing market. This is a world first. The GIIN estimates the global impact investing market to be US$502 billion.
Although impact investing has become increasingly popular in recent years, with many major financial firms building impact investing practices, a clear estimate of the market’s size has been difficult to capture due to a lack of available data and the fast-evolving nature of the industry. Representing the most comprehensive study to date, the ‘Sizing the Impact Investing Marke’t report is based on the collation of AUM data on more than 1,300 impact investors around the world. These include asset managers, foundations, banks, development finance institutions, family offices, pension funds, insurance companies, and others.
Amit Bouri, GIIN chief executive, said: “As the impact investing industry develops, it is critical that we further develop our understanding of the contours of the market – and one of the most important and fundamental data points about any industry is its current size.
“This research gives us insight into the current state of the market, and it will also lead to deeper conversations about the market’s future potential.”
The market-sizing research not only established a fundamental understanding of the market’s current scale but also served as a first step in a GIIN initiative to ensure the impact investing market continues to scale with integrity, he said.
The publication of te report would lead into the launch of two critical pieces of industry infrastructure that were designed to maintain the integrity of practice, he said. On April 3, the GIIN will launch the ‘Core Characteristics of Impact Investing’ report, which outlines the elements that define impact investing and distinguish it from other complementary investment approaches.
Bourie said: “The results of this study underscore the momentum of impact investing, but also the need for continued growth across the responsible investing landscape if we are to address global challenges like those outlined in the [United Nations] Sustainable Development Goals. As the industry grows, we need to be sure it scales with integrity-ensuring good intentions translate into real impact results.”
– G.B.
