IIG launches impact fund
Impact Investment Group (IIG) has launched a $70 million Impact Alternatives investment fund, designed to balance profit and purpose with socially-conscious investment.
The Australian impact investment market was valued at almost $20 billion, according to the Responsible Investment Institute Australasia (RIAA), and IIG said it had seen client demand for this type of fund.
The fund would be a diversified portfolio of impact investments with a return target of 6% to 10% per annum and an income yield objective of 3% to 5% per annum, distributed quarterly.
It would target a low correlation to equities, bonds and property by including a mix of investments such as renewable energy, infrastructure and impact private equity.
The first early investment deals were expected to be made before the end of 2020.
IIG chief executive and co-fund manager, Daniel Madhavan, said: “Investors want social and environmental benefits alongside attractive returns, and smart advisors are looking for ways to diversify portfolios away from public equities and bonds. This fund ticks both of those boxes.
“We want to show that finance can be a force for good and we work in the context of broader visions. We see a future where energy is 100% renewable, affordable and universally accessible. Vibrant businesses can grow while respecting the earth and contributing to our society.”
AUTHOR
Laura Dew
Recommended for you
Investment provider Betashares has launched its first offering from its newly established private capital division, delivering institutional-grade private credit exposure for financial advisers and wholesale investors.
“Challenging flow patterns” at J O Hambro Capital Management have led to $16.2 billion in asset management outflows for Perpetual in FY25, as its CEO admits the firm can gain new assets but then has problems retaining them.
Income Asset Management is set to launch two managed accounts of investment grade assets and syndicated loans in FY26, responding to adviser demand.
Pengana Capital Group has detailed the impact of its move into private credit, with chief executive Russel Pillemer describing plans to “become a force in the non-institutional market”.
