A pilot index for the social investment market is to launch next year.

The index, which will be developed by Engaged Investment, will bring together financial and impact data on social investments, allowing investors to research and benchmark the market. This will be published as aggregated investment data for the market as a whole and by segment.

The index will analyse the social investment market by sector, geography, and stage of development of investees, and will sub-divide the market into debt, equity and quasi-equity

The pilot will include the creation of an index steering committee that will agree common data standards and definitions for the investment reporting and classification of impact investing.

Engaged Investment co-founder and joint chief executive Rupert Evenett said: “Investment loves an index and needs benchmarks. Richer market-wide investment data, clarity on risk and return and an index for investors are key steps in defining how emerging markets successfully emerge. An index helps impact investing to reach out to mainstream investors without diluting its focus on impact.” 

Engaged Investment co-founder and joint chief executive Karl H. Richter said: “This market needs a single reference point for robust time series data, where investors know they can research and benchmark the market to support their asset allocations and compare impact investing with other investment markets, as well as looking at it in comparison with their philanthropic and socially responsible investing or ethical investing activities.”