Aligning profit with values: endowments and foundations warm to impact investing

A survey conducted by NEPC, one of the industry’s largest independent, institutional investment consulting firms, found that impact investors are motivated by strong returns and mission alignment.

The results show that 86% of asset owners that currently use impact investing expect these allocations to equal or outperform the overall market.  And the majority (94%) of those who have implemented impact investing cite alignment with mission and/or values as a primary driver in their decision.

“Institutional investors don’t have to sacrifice returns in order to have a principled investment strategy,” comments Kristine Butler, a Senior Consultant in NEPC’s Endowments & Foundations practice. “It’s important the asset owner community understands that impact investing is based on more than merit alone. The assets, be they in equities or fixed income, must align with the strategic framework of a risk-adjusted portfolio. We’ve seen client interest in the space grow significantly in the past five years and we expect the same growth for the foreseeable future.”

For the summary infographic, click here.

For full survey results, click here.

For the original article on NEPC, click here.