Impact Investing for Pensions

A majority of local government pension schemes are considering local impact benefits when making decisions on what asset classes to invest in, a survey has found.

The SDG-focused emerging market private debt asset manager has also confirmed an increased allocation to its first fund from its cornerstone investors, including ABP, Europe’s largest pension fund.

When it comes to impact investing for institutional asset owners, there is no one-size-fits-all solution. But four case studies of large institutional investors by the GIIN show three features they all have in common.

Institutional investors and managers in the UK predict significant growth in the impact investing market, with place-based investing gaining the most momentum, according to a Pensions for Purpose survey.

The Danish commercial pension fund has so far made impact investments mostly in Denmark and its vicinity, according to CIO Anders Stensbøl, speaking at the GIIN Impact Forum in Amsterdam.

Pension funds provided one-fifth of all investments, with a strong focus on social and affordable housing, according to a report by Better Society Capital.

The UK-based Local Government Pension Scheme collective has made an initial investment into impact real estate of £100m in order to speed up the decarbonisation of existing assets.

The Dutch pension fund of the Dutch-Belgian retail giant has set an impact mandate of €300m. Achmea IM will provide strategic advice, as well as select and monitor funds aligned with the pension fund’s impact themes of climate and nutrition.

Paris Agreement goals are unachievable unless more capital is mobilised to support the transition to a more sustainable economy in developing countries. Yet, emerging markets are often overlooked by institutional investors, according to a report by Pensions for Purpose.

The aim is to increase healthcare capacity in the Netherlands. The first investment is in Momo Medical, which has developed an app to support more efficient working in nursing homes.