BETHESDA, USA, 23 February 2021— ImpactAssets has released the ImpactAssets 50 2021 (IA 50), a free online database for impact investors, family offices, financial advisors and institutional investors that features a diversified listing of private capital fund managers delivering social and environmental impact as well as financial returns.
This year marks the tenth edition of the IA 50, and despite a tumultuous year, total assets under management (AUM) among selected fund managers jumped to a record USD 228 billion in 2020, up from USD 181 billion in 2019. Thirteen managers selected in this year’s showcase reported assets exceeding USD 1 billion, including responsAbility with USD 3.5 billion in assets under management. By comparison, in the IA 50’s inaugural year, assets totaled just USD 6.8 billion.
“As impact investing continues its inexorable rise, it is critical to provide investors with a curated, objective evaluation of impact fund managers,” said Jennifer Kenning, CEO and Co-Founder, Align Impact, IA 50 Senior Investment Advisor. “The IA 50 is built to filter out the noise that is growing louder in impact investing and help investors focus on deep, meaningful impact."
This year’s list revealed several investing trends.
Investment Targets: In 2020, the global pandemic and subsequent economic downturn affected communities worldwide, and IA 50 fund managers focused on some of those hardest hit. A total of 63% of managers targeted investment in rural communities, while 54% specifically benefitted people of color and 48% were focused on advancing women-led businesses. Two-thirds (67%) of managers said their firm focused on underdeveloped markets where the market is relatively new, emerging, or subject to systemic challenges.
Diversity and Inclusion: While fund management remains overwhelmingly non-diverse, IA 50 fund managers are leading with diversity. This is especially true of the IA 50 Emerging Impact Managers, where 51% reported more than half of their investment professionals were women and 54% said more than half of their investment professionals were people of color.
Impact and Financial Return: Impact fund managers remained focused on delivering both positive impact and investment performance. A total of 87% of IA 50 fund managers targeted market rate or above rates of return and 92% delivered either in line or above their target returns. Emerging Impact Managers reported similar results, with 63% targeting market rates of return or above, and 98% delivering either in line or above their initial target returns.
In addition to Emerson and Osborne Kartt, the IA 50 Review Committee is comprised of an expanded group of impact investment experts and leaders, including Lauren Booker Allen, Senior Vice President, Impact Advisory, Jordan Park Group; Mark Berryman, Managing Director of Impact Investing, The CAPROCK Group; Ronald A. Homer, Chief Strategist, Impact Investing, RBC Global Asset Management (US) Inc.; Karl "Charly" Kleissner, Ph.D., Co-Founder of Toniic and KL Felicitas Foundation; Malaika Maphalala, CPWA® Private Wealth Advisor, Natural Investments, LLC; Cynthia Muller, Director of Mission Investment, W.K. Kellogg Foundation; Rehana Nathoo, Founder & CEO, Spectrum Impact; Stephanie Cohn Rupp, CEO and Partner, Veris Wealth Partners; Fran Seegull, Executive Director, U.S. Impact Investing Alliance, Ford Foundation; Liesel Pritzker Simmons, Co-Founder and Principal of Blue Haven Initiative; Julia Sze, CFA, Impact Investor, Julia W. Sze Consulting and Margret Trilli, President and CIO, ImpactAssets.
Osborne Kartt and Jennifer Kenning, CEO and Co-Founder of Align Impact and IA 50 Senior Investment Advisor, led the ImpactAssets and Align Impact Investment teams in the application scoring and analysis process
About responsAbility Investments AG (www.responsability.com) A leading impact asset manager with an 18-year track record, responsAbility manages USD 3.5 bn of assets invested in over 300 ESG-managed high-impact companies across 76 emerging economies. Since the company's inception in 2003, responsAbility-managed funds have invested over USD 10 bn in private debt and private equity with companies in the sectors of sustainable food, financial inclusion and climate finance whose business models directly support the United Nation's Sustainable Development Goals (SDGs). responsAbility is headquartered in Zurich, Switzerland, and has local offices in Bangkok, Lima, Mumbai, Nairobi, Oslo, Paris and Tbilisi. Owned by various reputable Swiss and international financial institutions, private investors and its own employees, responsAbility is registered with the Swiss Financial Market Supervisory Authority FINMA.
About the ImpactAssets 50 The IA 50 is the first publicly available database that provides a gateway into the world of impact investing for investors and their financial advisors, offering an easy way to identify experienced impact investment firms and explore the landscape of potential investment options. In order to be considered for the IA 50 2021, fund managers needed to have at least USD 25 million in assets under management, more than three years of experience as a firm with impact investing, documented social and/or environmental impact and be available for US investment. Additional details on the selection process are available here. About ImpactAssets (www.impactassets.org) ImpactAssets is the leading impact investing partner for individuals, families and philanthropists tackling the world’s greatest challenges by investing in the world’s brightest ideas. We make it easy for our clients to “discover, connect and invest” in game-changing entrepreneurs and funds. Founded in 2010, ImpactAssets increases flows of money to impact investing with our 100% impact investment platform and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers.
The ImpactAssets Donor Advised Fund is an innovative vehicle that empowers donors to increase the impact of their giving by combining it with strategic, sustainable and responsible investing to build a sophisticated philanthropic endowment. The Fund currently has more than USD 1.4 billion in assets in 1,400 donor advised funds, working with 350 wealth advisors across 60 financial services firms.
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This information was produced by responsAbility Investments AG together with its partners to the best of its knowledge and belief. However, responsAbility Investments AG provides no guarantee with regards to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this information material are those of responsAbility Investments AG at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This material is provided for information purposes only. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising his/her own judgment. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law.
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