Survey Shows Market Growth in Impact Investments and Satisfaction among Investors

  Survey Shows Market Growth in Impact Investments and Satisfaction among
  Investors

Business Wire

NEW YORK -- January 7, 2013

J.P. Morgan and the Global Impact Investing Network (GIIN) released today
Perspectives on Progress, a report that reveals the experiences, expectations,
and perceptions of 99 impact investors in 2012, as well as their plans for
2013. The survey indicates a growing market, with respondents planning to
commit USD 9 billion to impact investing in 2013, up from a total commitment
of USD 8 billion in 2012.

Additionally, the vast majority of surveyed investors report that their impact
investment portfolio performance is meeting or exceeding social,
environmental, and financial expectations, which is critical to impact
investments as impact investors seek measurable social and environmental
impact alongside financial returns. Two-thirds of respondents are principally
pursuing market-rate financial returns. Investors surveyed for the report
include fund managers, development finance institutions, foundations,
diversified financial institutions, and other investors with at least USD 10
million committed to impact investment.

“At J.P. Morgan Social Finance, we are especially encouraged by the findings
in this survey – that, despite the market’s early stage, investors' portfolios
are meeting financial expectations in addition to social and environmental
expectations,” said Yasemin Saltuk, Director of Research for J.P. Morgan
Social Finance and co-author of the report. “The findings from this report are
insightful and we are optimistic for the continued growth in investments that
have a positive social and environmental impact.”

“Although investors have been making socially and environmentally motivated
investments for quite some time, collaboration to develop a coherent and
supportive market has increased significantly in the last five years,” said
Amit Bouri, Managing Director at the GIIN and co-author of the report. “In the
results of this survey, we see positive indication of a market growing in both
size and sophistication, which we hope will encourage more activity and
attract new investors to the impact investing field.”

Though the impact investing market is relatively new, a majority of
respondents report that some or many investments passed their initial screens
in nearly all regions of the world, with U.S. & Canada, South Asia, and Latin
America & the Caribbean providing the most robust pipelines to surveyed
investors. However, respondents believe the market is still challenged by a
lack of appropriate capital across the risk/return spectrum and a shortage of
high-quality investment opportunities. Encouragingly, surveyed investors
indicate that progress was made in these areas and across other indicators of
market growth in 2012.

Respondents also highlight the importance of impact measurement for both
raising capital and general industry development. Notably, 96 percent of
respondents measure their social and/or environmental impact, with most
utilizing third-party standards, including the Impact Reporting and Investment
Standards (IRIS) metrics, offered as a free public good by the GIIN.

Perspectives on Progress is the third in a series of reports, started in 2010,
that present perceptions of the impact investment market as well as portfolio
performance from a sample of impact investors. Impact investments are
investments that are made into companies, organizations, and funds with the
intention to generate measurable social and environmental impact alongside a
financial return. They can be made in both emerging and developed markets, and
target a range of returns from below market to market rate, depending upon the
circumstances.

About J.P. Morgan's Corporate & Investment Bank: J.P.Morgan’s Corporate &
Investment Bank is a global leader across banking, markets and investor
services. The world’s most important corporations, governments and
institutions entrust us with their business in more than 100 countries. With
$18 trillion of assets under custody and $393 billion in deposits, the
Corporate & Investment Bank provides strategic advice, raises capital, manages
risk and extends liquidity in markets around the world. Further 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.

Contact:

Press:
GIIN
Melody Meyer, 646-837-7174
mmeyer@thegiin.org
or
J.P. Morgan
Jennifer Kim, 212-622-7068
jennifer.h.kim@jpmchase.com
 
Press spacebar to pause and continue. Press esc to stop.