Products & Services Research Report Series. An Initial Overview of Impact Investing: Doing Well by Doing Good

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1 Products & Services Research Report Series An Initial Overview of Impact Investing: Doing Well by Doing Good August 2010

2 TABLE OF CONTENTS INTRODUCTION, KEY FINDINGS, & EXECUTIVE SUMMARY...7 A SYNOPSIS OF FINANCIAL SERVICES INDUSTRY PRODUCT & SERVICE MARKETS...16 EVOLUTION OF THE IMPACT INVESTING MARKET...89 Key Driving Factors...89 Market History...89 Emergence Phase...89 Growth Phase...89 Maturation Phase...89 Market Definition...90 Socially Responsible Investing...90 Community Lending...90 Microfinance...90 Market Growth...90 Financial Services Firms...90 Mutual Funds...90 Assets Under Management...90 Loans...91 Loans Outstanding...91 Leading Impact Investing Firms...91 Mutual Funds...91 Assets Under Management...91 Loans...91 Loans Outstanding...91 MARKET SEGMENTATION...92 Socially Responsible Investing...92 Market History...92 Market Definition...92 Market Growth...92 Leading Socially Responsible Investing Firms...92 Community Lending...92 Market History...92 Market Definition...92 Market Growth...92 Leading Community Lending Firms...92 Microfinance...92 Market History...92 Market Definition...93 Market Growth...93 Leading Microfinance Firms...93 MARKETS & DISTRIBUTION CHANNELS...94 Direct Distribution...94 Online Tools & Advice...94 Online Brokerage...94 Online Banking & Mortgages...94 Online Insurance Impact Investing 2

3 Financial Advisor Markets...94 Retail Banks...94 Full-Service Brokerage Firms...94 Fee-Based Financial Advisors...94 Independent Reps...94 Upscale Channels...95 Institutional Markets...95 Defined Contribution Plans...95 Defined Benefit Plans...95 Endowments & Foundations...95 International Markets...95 English Speaking Countries Markets...95 Europe, Middle East, & Africa Markets...95 Asia Pacific Markets...95 Latin America Markets...95 Offshore Markets...95 FUTURE PREDICTIONS FOR THE IMPACT INVESTING MARKET...96 Institutionalization of the Business...96 Emergence of Platform Development...96 Increased Adoption by Brokerage Firms...96 APPENDIX...97 Profiles of Impact Investing Firms...97 Bank Rakyat...97 History...97 Early Phase...97 Middle Phase...97 Recent Phase...97 Statistics...97 Businesses...97 Organization & Ownership...97 BRAC Bank...98 History...98 Early Phase...98 Middle Phase...98 Recent Phase...98 Statistics...98 Businesses...98 Organization & Ownership...98 Calvert Foundation...99 History...99 Early Phase...99 Middle Phase...99 Recent Phase...99 Statistics...99 Businesses...99 Organization & Ownership...99 Cogster.Com...99 History...99 Early Phase Middle Phase Impact Investing 3

4 Recent Phase Statistics Businesses Organization & Ownership Compartamos Banco History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership ebay History Businesses Micro Place Organization & Ownership Equity Bank History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Generation Investment Management History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Grameen Bank History Early Phase Nobel Peace Prize Phase Recent Phase Statistics Businesses Organization & Ownership Micro Vest History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Root Capital History Impact Investing 4

5 Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Sarona Fund History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Share Microfin History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership SKS Microfinance History Non-Profit Phase For Profit Phase Public Phase Statistics Businesses Microfinance Organization & Ownership Spandana Sphoorty Financial History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Unifi Companies History Businesses Calvert Organization & Ownership Profiles of Impact Investing Firms Service Providers FINCA History Early Phase Middle Phase Recent Phase Statistics Impact Investing 5

6 Businesses Organization & Ownership Global Impact Investing Network History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Imprint Capital Advisors History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Miller-McCune History Early Phase Middle Phase Recent Phase Statistics Businesses Organization & Ownership Profiles of Impact Investing Firms Markets & Distribution Channels Examples Duplication or distribution of this report, and/or the data in this report, is strictly prohibited without the written consent of Impact Investing 6

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