We are experiencing a transition to an era where total social benefit is becoming an increasingly important metric for the perceived value of products and services. Consequently, the investment industry is risking its enduring relevance and credibility by assessing and subsequently rewarding success through solely financial metrics.
For this roundtable discussion, and subsequent whitepaper summarising the discussion, we assembled representatives from asset owners, investment managers, family offices, foundations, private equity groups and a responsible remuneration specialist to discuss the potential for outcomes-based investment products to offer an opportunity for investment managers to deliver greater value for their clients.
We feel this is a topic worthy of focus due to our experiences working with clients to build teams that are incentivised to create and manage products that allow them to invest in companies with profitable business models which deliver scalable, net positive, impact as a function of their growing business models.
The whitepaper provides insight on:
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Demand
Investor appetite for managers to demonstrate additional value beyond traditional risk and return
considerations -
Data
How can pre-agreed outcomes be accurately measured? Can Investment managers manage what they can’t measure?
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Examples
Practical applications from existing fund managers:
Who’s using outcomes as part of their inventive structure and how are they doing it?
This paper considers how the incentive structures for asset management companies and their employees should be evolving in regard to impact outcomes, whether it be for dedicated impact managers or indeed the wider investment market.
Can we learn from the progress fund management companies have already made regarding imbedding impact into rewards structures?
Can we learn from the successes and can we learn more from the failures in this area?
Mark Thompson, Roundtable Chair
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Is the increased interest in impact outcomes manifesting itself in actual demand?
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Is there more talk than action?
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If there is demand, does this involve new products or the evolution of existing products?
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What are the outcomes that matter to me as an investment manager?
Access the full paper
To download a copy of the whitepaper, please fill in the form below.
If you'd like to discuss the topics raised in the paper, please contact impactinvesting@acre.com.