Impact investing has become an increasingly popular approach for investors who want to make a positive social and environmental impact alongside financial returns. With the rise of ESG investing and Millennials’ demand for purpose-driven companies, many leading investment firms now offer impact investing options. This article examines the top impact investing firms of 2020 based on assets under management, fund performance, investment strategies and impact measurement.
TIAA’s Nuveen has over $1B in impact assets
TIAA’s investment management arm Nuveen stands out with over $1 billion in impact investing assets under management as of 2020. Nuveen offers a range of impact investing funds across different asset classes, including fixed income, public equities and private capital. Its impact strategies focus on key themes like inclusive finance, sustainable agriculture, clean energy, health and affordable housing. Nuveen has a rigorous impact management system to measure and report on the environmental and social performance of its impact investments.
Morgan Stanley ranks among the largest in public impact funds
With $10 billion in impact AUM, Morgan Stanley Investment Management is one of the biggest players in public impact investing funds. The firm aims to deliver competitive market rate returns alongside measurable positive impact. Its impact fund strategies center around sustainability, healthcare and empowerment. Morgan Stanley also provides custom impact investing solutions for individual and institutional investors.
BlackRock’s impact platform spans public and private markets
BlackRock is a leader in impact investing, offering both public and private impact funds and strategies. Its impact platform has over $200 billion in AUM invested for positive social and environmental outcomes. BlackRock’s impact capabilities include green bonds, gender lens investing, thematic public equities, ESG integration, and blended finance. The firm has committed to measuring and reporting on 100% of its AUM for impact, enabling transparency.
Wellington offers impact strategies across asset classes
With over $1 trillion in AUM, Wellington Management stands out for its diverse impact investing capabilities across asset classes. The firm integrates ESG factors and impact analysis in its investment process across equities, fixed income and multi-asset portfolios. Wellington’s impact strategies focus on climate change, sustainable agriculture, financial inclusion, healthcare and community development. Its rigorous impact framework tracks both outputs and long-term outcomes.
PGIM provides impact solutions for institutional investors
PGIM, the investment management business of Prudential Financial, has over $20 billion in impact AUM. It offers customized impact investing solutions for institutional investors across public and private markets. PGIM’s impact strategies center around three pillars – affordable housing, community development and inclusive finance. The firm has a robust impact measurement framework to quantify the environmental and social performance of its impact investments.
In summary, leading impact investing firms like Nuveen, Morgan Stanley, BlackRock, Wellington and PGIM are offering impact strategies across public, private and multi-asset funds. With trillions in collective AUM and comprehensive impact measurement, these top firms enable institutional and individual investors to deploy capital for positive impact aligned with financial returns.