Report: Endowments and Foundations Warm to Impact Investing

Friday, May 6, 2016

A poll of endowments and foundations found impact investors are motivated by strong returns and mission alignment.

More than half of endowments and foundations have adopted or are considering impact investing, according to NEPC.

In a survey, the consulting firm found that 28% of endowments and foundations currently utilize impact investing strategies. An additional 25% said they plan to review a socially responsible investment program.

“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,” said Kristine Butler, a senior consultant in NEPC’s endowments and foundations practice.

Nearly all of those who had implemented impact investing said the approach was aligned with their institution’s mission. Other reasons included encouragement from constituents and a belief that the approach could result in better risk-adjusted returns.

Source: Chief Investment Officer (link opens in a new window)

impact investing