Products & Services Research Report Series An Initial Overview of Impact Investing: Doing Well by Doing Good August 2010
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...94 10.08.01 Impact Investing 2
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...100 Middle Phase...100 10.08.01 Impact Investing 3
Recent Phase...100 Statistics...100 Businesses...100 Organization & Ownership...100 Compartamos Banco...100 History...100 Early Phase...101 Middle Phase...101 Recent Phase...101 Statistics...101 Businesses...101 Organization & Ownership...101 ebay...101 History...101 Businesses...102 Micro Place...102 Organization & Ownership...102 Equity Bank...102 History...102 Early Phase...102 Middle Phase...102 Recent Phase...102 Statistics...102 Businesses...102 Organization & Ownership...103 Generation Investment Management...103 History...103 Early Phase...103 Middle Phase...103 Recent Phase...103 Statistics...103 Businesses...103 Organization & Ownership...104 Grameen Bank...104 History...104 Early Phase...104 Nobel Peace Prize Phase...104 Recent Phase...104 Statistics...104 Businesses...104 Organization & Ownership...104 Micro Vest...105 History...105 Early Phase...105 Middle Phase...105 Recent Phase...105 Statistics...105 Businesses...105 Organization & Ownership...105 Root Capital...106 History...106 10.08.01 Impact Investing 4
Early Phase...106 Middle Phase...106 Recent Phase...106 Statistics...106 Businesses...106 Organization & Ownership...106 Sarona Fund...107 History...107 Early Phase...107 Middle Phase...107 Recent Phase...107 Statistics...107 Businesses...107 Organization & Ownership...107 Share Microfin...108 History...108 Early Phase...108 Middle Phase...108 Recent Phase...108 Statistics...108 Businesses...108 Organization & Ownership...108 SKS Microfinance...108 History...109 Non-Profit Phase...109 For Profit Phase...109 Public Phase...109 Statistics...109 Businesses...109 Microfinance...109 Organization & Ownership...110 Spandana Sphoorty Financial...110 History...110 Early Phase...110 Middle Phase...110 Recent Phase...110 Statistics...110 Businesses...110 Organization & Ownership...110 Unifi Companies...111 History...111 Businesses...111 Calvert...111 Organization & Ownership...112 Profiles of Impact Investing Firms Service Providers... 112 FINCA...112 History...112 Early Phase...112 Middle Phase...112 Recent Phase...112 Statistics...113 10.08.01 Impact Investing 5
Businesses...113 Organization & Ownership...113 Global Impact Investing Network...113 History...113 Early Phase...113 Middle Phase...113 Recent Phase...113 Statistics...113 Businesses...114 Organization & Ownership...114 Imprint Capital Advisors...114 History...114 Early Phase...114 Middle Phase...114 Recent Phase...114 Statistics...114 Businesses...114 Organization & Ownership...115 Miller-McCune...115 History...115 Early Phase...115 Middle Phase...115 Recent Phase...115 Statistics...115 Businesses...115 Organization & Ownership...116 Profiles of Impact Investing Firms Markets & Distribution Channels Examples... 116 Duplication or distribution of this report, and/or the data in this report, is strictly prohibited without the written consent of 10.08.01 Impact Investing 6