Bringing you live news and features since 2006 

Guernsey Finance reports on impact investing

RELATED TOPICS​

Guernsey Finance has published a paper entitled ‘Redrawing boundaries: How impact investing is making a difference’ based on interviews with a number of financial firms.

Guernsey Finance writes that impact investing is increasingly taking hold as allocators recognise the return benefits and this presents opportunities for established international financial centres.

The paper explores some of the regulatory and investor-led drivers behind impact investing. The asset class is projected to account for 1 per cent or USD2 trillion of globally-invested capital by 2025, opening up opportunities for major financial centres to support such strategies, the financial centre says.

“The paper debunks popular notions about impact investing, in particular the myth that returns are often compromised in exchange for a social good or advancement. Guernsey Finance cited findings by the Global Impact Investing Network’s (GIIN) Annual Impact Investor Survey which reported that 91 per cent of respondents found financial performance was superior or in line with expectations, while 98 per cent said impact performance was better or on par with expectations.

“Returns have been given a boost by financial innovation in the sector, where a number of bespoke and interesting financial instruments are being used, including social impact bonds, charity bonds and blended finance structures. Impact investing is continually changing with new players entering the market, including private equity, private debt and venture capital (VC) sectors or firms transacting in real assets accounting for the majority of fund managers participating in the space,” the paper says.

“Impact investing used to be the preserve of HNWIs, private wealth or family offices but we are seeing a broadening of the base. This has happened due to greater awareness of the subject matter and recognition that investors can make risk-adjusted returns through a wide range of products. As such, we are seeing private banks, insurance companies and pension funds move into impact investing,” says Justin Sykes, Managing Director at Innovest Advisory, a boutique consultancy focusing on social impact and innovation.  
 
Guernsey Finance Deputy Chief Executive Kate Clouston (pictured) says impact investing was now establishing itself within mainstream global finance and that Guernsey was perfectly placed to assist in its continuing evolution.

“Any international financial centre looking to build a track record in this space has to be forward-thinking and flexible in its approach and this must be underpinned by strong but amenable regulatory oversight which permits innovation to take hold but displays robust consumer protection and follows best practices and standards,” she says.
Clouston, who is a member of Impact Guernsey – a cross-sector financial initiative aimed at identifying and building business opportunities related to impact investment, said the white paper helped to underline Guernsey’s position in relation to the emerging asset class.

“Guernsey has an enviable reputation across a range of financial services sectors, including investment funds, insurance and wealth management and is therefore primed to help firms and individuals meet their impact investment obligations and requirements,” she says.

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Jigna Gibb, Bloomberg
Bloomberg Indices has recently hired Jigna Gibb as Head of Commodities and Crypto Index Products, to lead its commodities and...
Robert Minter, director of ETF investment strategy at abrdn takes a look at passive investing in commodities and shares his...
Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
ETFs
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by