ECONOMY AND POLITICS AFFECT IMPACT INVESTORS
KANSAS CITY, Mo., March 27, 2024 /PRNewswire/ -- In the seventh impact investing survey by the $240 billion* global asset manager American Century Investments, U.S. investors buck international trends as the only surveyed country where a growing number of respondents are willing to sacrifice returns to create a positive impact. Yet, the appeal of impact investing has declined in each country surveyed, including the U.S. The survey results offer multiple reasons for this decline in appeal, including market conditions, concerns about greenwashing and the sustainability backlash. Survey results go back to 2016 in the United States, 2019 in the U.K., 2020 in Germany, 2021 in Australia and 2022 in Singapore.
- 40% of U.S. respondents are willing to sacrifice returns in order to create a positive impact.
- Overall, 67% of interested investors would sacrifice up to 10% of returns to create a positive impact, with 6-10% the most common range.
- "In its earliest forms, impact investing often accepted lower expected returns to have a bigger impact, but our impact investment strategies emphasize sustainability-related attributes or outcomes in addition to delivering a financial return.
- "A willingness to give up as much as 10% of an expected return shows that impact investors expect to earn competitive returns and are making rational choices to realize an impact emphasis in addition to a financial return."