A new report claiming that social impact investing could become a major mainstream market has received backing from Alternative Asset Analysis (AAA).
The analysis group is a major advocate of ethically and socially responsible investing and has welcomed the publication of ‘Making Good in Social Impact Investment: Opportunities in an Emerging Asset Class’ report. The report, which was sponsored by TheCityUK and commissioned by The Social Investment Business, claims that the UK could be a leader in the market.
AAA said it was particularly impressed with calls for an integrated approach, which would include a variety of products that would reflect the various stages in the development of a social organization. It claims that impact investment has all the signs of being a mainstream asset class in the future, which millions of people may want to invest in as an alternative to equities and other more traditional mainstream assets.
AAA’s analysis partner, Anthony Johnson, said, “We also believe that impact investing has a promising future as people increasingly look for alternative places to put their money while also putting more emphasis on ethical responsibility.”
He added, “Investing in projects that have an environmental benefit, whilst also offering the chance to make a strong return, is becoming more possible. Firms like Greenwood Management that run sustainable forestry projects in emerging economies manage to combine the two effectively.”
AAA is keen to promote the benefits of investing in emerging and developing countries as so much opportunity lies in these markets. Some projects help communities to flourish simply by providing small business loans or insurance that have previously always been impossible to obtain.
TheCityUK’s chief executive Chris Cummings, said, “Social impact investing is a targeted, positive way to channel financial capital and create mutually beneficial investor and social sector relationships.”
He added, “It is a maturing asset class in the world of international finance.”