Partner Insight: Impact investing has transformed

Success in impact investing has been driven by the rising awareness around social inequality and climate issues, both of which are no longer abstract concepts.

Sarka Halas
clock • 2 min read
Partner Insight: Impact investing has transformed

Impact investing involves the measurement and reporting of the impact of environmentally and socially conscious investments. Traditionally, impact strategies have traditionally been smaller in scale - however, this trend is changing. 

 Tammie Tang, the portfolio manager leading Columbia Threadneedle Investments' pioneering social bond strategies, explains that when they first ventured into impact investing to address social inequality and deprivation, the social bond universe was nearly non-existent.  

 Yet, it has already been a decade since the successful launch of the UK's first daily liquid bond strategy, the CT UK Social Bond Fund in 2013. This was followed by the 2017 launch of the CT (Lux) European Social Bond, Europe's first daily liquid social bond fund.  

 Today, the market has grown substantially, and as of June 2023, Columbia Threadneedle manages more than €1bn within its social bond strategies. 

Andrew Brown, portfolio manager within the team, explains: "Essentially, they are all trying to do the same thing - it is all about how you can enable the bond market to generate positive social outcomes or impacts. It is very well positioned to do so because the bond market is the largest asset class, at roughly $130trn - and in many cases those organisations doing the most impactful work are not able to issue equity, such as development banks, agencies and charities." 

 Tang says: "Now people understand, thanks to better literature and access to academic work, the problem of social inequality. We do not accept that unequal societies are likely to give us happy, satisfied people with good well-being, stable community, and politics. By targeting better outcomes for people in need, we seek to benefit and support not just them but all of society."

To read the full Spotlight on Social Bonds, complete your details in the form below.

Sources. 

(1) Columbia Threadneedle Investments, 30 June 2023  

 

More on Investment

Private markets expected to outperform over next five years

Private markets expected to outperform over next five years

More than half of institutional investors to increase allocation in next two years

Jasmine Urquhart
clock 05 February 2025 • 2 min read
Opportunities in investment-grade securitised credit

Opportunities in investment-grade securitised credit

Why securitised remains an underinvested asset class in the UK and how investor demand is increasing

Professional Pensions
clock 05 February 2025 • 21 min read
CofE Pensions Board secures £50m for retirement housing

CofE Pensions Board secures £50m for retirement housing

Revolving credit facility with NatWest will help grow CEPB’s retirement housing portfolio

Jasmine Urquhart
clock 04 February 2025 • 1 min read
Trustpilot