JPMorgan Chase & Co. : Impact Investing Continues to Gain Traction Among Wide Range of Investors
12/14/2011| 10:15am US/Eastern
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Largest survey of impact investment market indicates more activity
and interest going into 2012
J.P. Morgan and the Global Impact Investing Network (GIIN) released
today Insight into the Impact Investment Market, which highlights
52 impact investors' perspectives on the state of the industry, as well
as data analysis on over 2,200 of their portfolio investments. The
majority of impact investors surveyed express tempered optimism: while
they believe the impact investing industry is "in its infancy and
growing," there is a positive outlook for the industry, with investors
planning to invest almost USD 4 billion over the next year, and an
expectation that impact investments will compose 5-10 percent of
portfolios over the next ten years.
"J.P. Morgan's Social Finance business provides financial services to
the growing market for impact investments, including committing J.P.
Morgan capital and providing thought leadership," said Yasemin Saltuk,
Director of Research for J.P. Morgan Social Finance and co-author of the
report. "This year's survey returned more than twice as many data points
as last year's survey, from a broader and more geographically disperse
pool of respondents. This research provides more transparency in the
growing impact investment industry, which we hope will encourage more
investors to enter the market."
"This research underscores the long-term potential of impact investments
while recognizing that the market is in an early stage of development,"
said Amit Bouri, Director of Strategy and Development at the GIIN. "The
GIIN looks forward to continuing our work with industry practitioners to
support market growth. We hope the analysis helps investors to
effectively participate in the market, while advancing field-building
activities."
The analysis relied on data collected by the GIIN, a nonprofit
organization dedicated to increasing the scale and effectiveness of
impact investing. Impact investments are intended to create positive
impact beyond financial return. Supporting the findings of a 2010 report
that included similar data gathered by the GIIN, impact investors'
expectations for financial returns range from concessionary to
market-beating, indicating there is room in the market for a wide range
of performance.
The report also identifies opportunities and challenges in the impact
investing industry. Investor use of third party systems for impact
measurement has increased by 10 percent since 2010, and 65 percent of
survey respondents are aligned with the GIIN's Impact Reporting and
Investment Standards (IRIS). Respondents believe that the top challenge
to industry growth is lack of track record of successful investments,
and the biggest risks are illiquidity and uncertainty around financial
returns. Increased government activity and infrastructure development
are helping to address these challenges, improving market information
and promoting growth.
About J.P. Morgan: J.P. Morgan is the investment banking arm of
JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services
firm with assets of $2.3 trillion and operations in more than 60
countries. The Firm is a leader in investment banking, financial
services for consumers, small-business and commercial banking, financial
transaction processing, asset management and private equity. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves
millions of consumers in the United States and many of the world's most
prominent corporate, institutional and government clients under its J.P.
Morgan and Chase brands. Information about J.P. Morgan is available at www.jpmorgan.com
About the Global Impact Investing Network: The Global Impact
Investing Network (GIIN) is a not-for-profit organization dedicated to
increasing the scale and effectiveness of impact investing. The GIIN
builds critical infrastructure and supports activities, education, and
research that help accelerate the development of a coherent impact
investing industry. For more information, please visit www.thegiin.org.
J.P. Morgan
Jennifer Hanley, 212-270-3350
jennifer.m.hanley@jpmchase.com
or
GIIN
Min
Pease, 212-852-8495
mpease@thegiin.org
© Business Wire 2011
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