AAA has welcomed news that pension funds in the UK are increasing their exposure to impact investments.
Online PR News – 08-December-2012 – Boston, MA, December 08, 2012 – Alternative Asset Analysis (AAA) has welcomed news that pension funds in the UK are increasing their exposure to impact investments.
Research carried out by social investment intermediary Social Finance, found that 48 per cent of the 47 pension funds it surveyed were planning to invest in socially and environmentally sound asset classes, such as microfinance, green energy and social housing over the coming 1 to 2 years.
At the moment, only 23 per cent of the pension funds, with assets under management totalling some $230 billion, hold such investments. AAA’s analysis partner, Anthony Johnson spoke on behalf of the alternative investment advocacy group: “We welcome the news that pension funds in the UK are starting to realise the benefits of social investment.”
“Here in the US, institutional investors and individuals alike are all starting to increase their exposure to both alternative investments and impact investments and we wholeheartedly welcome this transition to a more responsible approach to investments.”
AAA also claims that alternative, ethical investments are a great way to diversify an investment portfolio against risk.
Social Finance’s David Hutchison, stated, “Impact investment is a visible asset with clear cash flow, stability and low correlation to other asset classes.”
AAA said it agreed with this, adding that other alternatives, such as forestry and timberland investment through firms like Greenwood Management, which operated sustainable plantation projects in countries like Brazil and Canada – also carry very low correlation with other economic trends. Mr Johnson said, “This means when other asset classes are losing value due to wider economic factors, these alternatives are staying strong.”
Mr Hutchison added that the next step in encouraging impact investing is setting up diversified, larger funds, to ensure people can get involved without putting up hundreds of thousands of dollars in initial investment. This will allow more individuals to get involved with this ethical side of investment.
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