Financial Quotient

What is impact investing?

Impact investors in Asia are mostly investing in microfinance and other financial services, most of which are still expecting market returns. PHOTO: AFP
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Impact investing refers to a type of investment made in enterprises or funds with the intention of generating both financial returns and environmental and/or social impact for investors.

Called impact investors, they can be individuals or institutional investors such as development finance institutions, foundations, endowments, pension funds or insurance firms.

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A version of this article appeared in the print edition of The Sunday Times on May 20, 2018, with the headline What is impact investing?. Subscribe