Impact investments in Australia have more than tripled over the past two years from $5.7bn to $19.9bn, finds a new study launched by the Responsible Investment Association Australasia (RIAA) today.
The study, Benchmarking Impact, involves 125 Australian investors collectively managing $1,722bn. An overwhelming majority (92%) say that their impact investments are meeting or exceeding their financial return expectations and they’d like to increase their allocation more than fivefold to $100bn over the next five years.
Impact investment products widely offered to Australian investors are dominated by green, social and sustainability (GSS) bonds (A$17bn or 85% of the product universe). The remaining A$2.9bn in impact investments held by Australian investors comprise real assets (A$2.2bn), private debt (A$287m), public equity (A$195m), private equity (A$97m), social impact bonds (A$66m) and “others” (A$44m).
The weighted average annualised r…