NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Friday, September 11, 2015

Investors are avoiding putting money in projects that deliver financial returns while having a positive social or environmental impact because they believe they are too complex, according to research.

According to a study by Barclays Wealth and Investment Management, fewer than one in ten investors have investing in social impact investments.

Greg Davies, head of behavioural-quant finance at Barclays told the Financial Times: ‘People think that impact investing is way too complex, so it is simpler to give money through philanthropy and keep investments separate.’

Barclays found that only 9% of the 1,800 retail investors surveyed had made impact investments, despite 56% reporting an interest to do so.