Insight into the Impact Investment Market

An In-Depth Analysis of Investor Perspectives and Over 2,200 Transactions

J.P. Morgan,the GIIN December 14, 2011 Yasemin Saltuk, Amit Bouri, Giselle Leung


Insight into the Impact Investment Market is a research report released by J.P. Morgan and the Global Impact Investing Network (GIIN).

The report finds that the majority of the 52 surveyed impact investors have tempered optimism about the impact investing industry: they believe it is "in its infancy and growing." The investors plan to invest almost USD 4 billion over the next year, and most expect that 5-10 percent of overall portfolios will be allocated to impact investments in ten years. The analysis was done by J.P. Morgan and relied on survey data collected by the GIIN. 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 range of performance.

The report also finds that investor use of third party systems for impact measurement has increased by 10 percent since 2010. The lack of track record of successful investments is identified as the industry's biggest challenge, with the biggest risks around investment illiquidity and uncertainty of financial returns. Increased government activity and infrastructure development are helping to address these challenges by increasing market information and promoting growth.We hope this report helps advance a broader understanding of impact investing as an appropriate and economically effective way to complement government aid and philanthropy in solving the world's greatest problems at scale.

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