Real Estate Investor Magazine South Africa November 2019 | Page 36

INVESTOR INTELLIGENCE
SPONSORED
Impact property investment
Part two: a detailed look into impact investment in SA
DANIEL LOMBARD
E
environmental impact. In fact, 80% of respondents
indicated that desire to work for a mission-driven
organization motivates their staff, and 79% indicated
their staff are interested in aligning their careers with
their personal values. At the organizational level,
respondents make impact investments because they
are part of their commitment as responsible investors
(85%) and because intentionally pursuing impact is
central to their mission (84%).
Respondent organizations target a range of impact
themes aligned to decent work and economic growth
(73%), no poverty (61%), reduced inequalities (59%),
and good health and well-being (58%).
xtracts from the important findings from the Global
Impact Investing Network’s ninth Annual Impact
Investor Survey. The 266 respondents to this year’s
Annual Survey reflect the following across the market:
1
The impact investment industry is
diverse
2
The impact investing market
continues to grow & mature
During the Annual Survey both four years ago and this
year, they grew their impact investing assets from USD
37 billion four years ago to nearly USD 69 billion this
year, a compound annual growth rate of nearly 17%.
Respondents also forecast strong future growth.
During 2018, they invested over USD 33 billion into
more than 13,000 impact investments. Looking
ahead, these organizations plan to invest over USD
37 billion into more than 15,000 investments during
2019, reflecting 13% projected growth in the volume
of capital invested and 14% growth in their number
of investments.
3
Impact measurement & management
is central to investors’ goals and
practices
The practice of impact investing is defined by investors’
deliberate pursuit of positive, measurable social or
4
Impact investors report performance
in line with both financial & impact
expectations
PERFORMANCE RELATIVE TO EXPECTATIONS
Number of respondents shown above each bar
n = 253
16%
Organization type: Nearly two-thirds of respondents
identify as fund managers, while the rest are various
other organization types, including foundations,
banks / diversified financial institutions, DFIs, family
offices, permanent investment companies, and
pension funds.
Investment focus: Two-thirds of respondents make
only impact investments; the remaining third also
make conventional investments.
Targeted returns: About two-thirds of respondents
principally target market-rate returns (66%), and the
remaining third are split between those targeting
returns closer to market rate (19%) and those targeting
returns closer to capital preservation (15%).
Impact objectives: Fifty-six percent of respondents
target both social and environmental impact
objectives, 36% target only social objectives, and 7%
target only environmental objectives.
NOVEMBER/DECEMBER 2019 SA Real Estate Investor Magazine
14%
Outperforming
82%
77%
In-line
Underperforming
2%
9%
Impact expectations Financial expectations
5
Impact investors indicate the
commitment to developing the
industry
Respondents further view the impact investing
industry as having a key role to play in driving
broader shifts in investment practice, most notably by
changing mindsets about the fundamental purpose
of finance in society and driving all investing to
integrate impact considerations as the ‘new normal.’
How to onboard as an impact property investor:
Visit the Property Assist website www.propertyassist.
co.za and register with Wealth Assist in four easy
steps and start making your first measurable impact
property investment.
SOURCE Property Assist
34
n = 254