Impact investing will continue to grow, fuelled by retail investors: Temasek

Michelle Quah

Published Wed, Mar 24, 2021 · 05:50 AM

Singapore

THE growth of impact investing - a market estimated to be worth some US$715 billion - will be fuelled much in the coming years by retail investors, said Temasek's head of Impact Investing, as the attractive returns earned by those already in the space act as a beacon for such individuals.

The growth of the market, however, could prove to be a double-edged sword: while more capital can be directed towards social and environmental causes, as funds pour in, the eventual size and scale of the market could begin to undermine the very intentionality and purpose of such investing.

"In the coming years, I believe you will see a continuous growth in AUM (assets under management) in impact investing, (and) a lot of that growth will be fuelled by retail investors," said Benoit Valenti…