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Real-world impact in emerging markets – an asset owner perspective

Our new research paper, commissioned by Ninety One, expresses asset owners’ views on impact investing in emerging markets. Separately, Pensions for Purpose collaborated with World Benchmarking Alliance (WBA).

Posted on Sep 23, 2024

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Pensions for Purpose’s real-world impact in emerging markets (EMs) paper sheds light on asset owners’ perspectives on impact investing in emerging nations. We interviewed 18 asset owners based in the UK, one in North America and two UK independent advisers to understand their views on:

  • Asset class decisions: examining long-term attitudes to risk and return, and the factors influencing decision making.
  • Sustainability decisions: encompassing approaches to sustainability, exclusion polices and net zero.
  • Impact and fiduciary responsibilities: exploring the fine balance between fiduciary responsibilities, climate change and net-zero targets.

Read the full report     Read the press release


DATA COLLECTION
We posed 14 questions to interviewees, covering asset owners’ preferences in asset class when allocating to EMs, their sustainability approach with a focus on net-zero targets, and how pension funds combine their financial performance with meeting their climate and net-zero goals.

LEADING PRACTICES
This research report presents seven best-practice examples, which were mentioned during the interview process. There were significant variations in the views asset owners hold on impact investing in EMs, but the following examples aim to raise awareness of the challenges and benefits of investing in these regions. Specific considerations were highlighted, including the promotion of global environmental, social and governance (ESG) changes, the underlying risks of EM investments, and strategies for mitigating these risks.

To the extent that anything in this report constitutes a financial promotion it is exempt from the general prohibition in S21 of FSMA on the basis that the report is only intended for investment professionals as such term is defined in S19 of the Financial Promotions Order. Please note that Pensions for Purpose does not provide consultancy services, advice or personal recommendations on any of the investment opportunities mentioned in this research. We collaborate on research projects with our members, we do not endorse any underlying funds.

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