Social Impact Investing

A case study approach in an asset allocation framework
The growth potential of impact investment
The report employs a case study approach,
mapping examples of Impact Investments on a
traditional asset allocation framework [pg. 15].
This structure illustrates readily the diversity of
products that are being developed, where they reside
within a traditional asset allocation framework
and the types of opportunities that are available to
date. From these cases the report draws a series
of findings [pg. 10].
This report, in conjunction with a new monograph
by Rockefeller Philanthropy Advisors, Solutions
for Impact Investors: From Strategy to Implementation,
demonstrates how impact investing can
be integrated across asset classes and equips investors
with the tools to frame their investment
decisions from strategy to implementation and
evaluation.
Compared to more traditional investments in established asset classes, Impact
Investment is only now emerging from infancy. Some initiatives have achieved
substantial scale but many others remain small. Questions include how much
the sector can scale and whether achieving greater scale will result in reduction
in either social / environmental impact or financial returns. However, apart from
growing in its own right, the sector has fostered a high level of innovation which
can potentially serve as a catalyst to influence how mainstream investments
are made.
The positive momentum of the Impact Investment sector continues, despite
the recent turmoil in global capital markets. While the basic investment infrastructure
needs to be developed, Impact Investment is becoming a stable and
sustainable alternative for institutional investors and high net worth individuals.
As the infrastructure builds further and more funds across asset classes achieve
market-rate performance, the Impact Investment sector stands poised to become
a powerful vehicle both to address significant social and environmental
issues and to chart a new course for the financial services industry to reclaim its
stature as an engine of social and economic upliftment.
5