Impact Investing:How do we ensure that this field has a growing and enduring impact?

Sebastian von StauffenbergCEO of MicroRate

2Responsible investing

0% Financial Return

Target Social Impact

TargetFinancial

Return

“Do not measure” “Do no harm” “Do good”

Impact Investing

$89 Billion AUM

Purely Financial Investing

$71 Trillion AUM

Socially Responsible

Investing

$13.5 Trillion AUM

Responsible Investing

3Microfinance and impact investing

Impact investing - $89 billion in AUM (Dec. 2012)1

Microfinance - $8 billion (Dec. 2012)2

CGAP study: Microfinance and SME funding is over 85% of international impact investing

1 As of December 2012, “Global Sustainable Investment Review 2012”

2 As of December 2012, “The State of Microfinance Investment: MicroRate’s 8th Annual Survey and Analysis on MIVs” Pending publication

91%

9%

Impact Investing AUM

Non- MIV MIVs

4The story of microfinanceEuphoria to Correction

1970s-1980sBirth

1990sEmergence

2000sOver-exuberance

2010Backlash

TodayStabilization

5Microfinance fund investment

2010 2015 2020

Commerical

Quasi-Commerical

Public

US$21 billion in 2020

US$7 billion in 2010

6Spectrum of impact investorsReturn expectations

Philanthropy Investing

0% Financial

Return

ReturnsReturns

Donations & grants InstitutionalNon-profits &

FoundationsVenture

Philanthropy

7Impact investing todayFiduciary Responsibility

Challenges

Limited absorptive capacity

Undefined credibility/ track record

Lack of objective information and insights

Solutions for Fiduciary Responsibility

Insights using PRSM™ Methodology

Performance Risk Social Management