For the better part of two decades, the world of philanthropy has been engaged in an important, sometimes contested, conversation about “impact”—both how we measure it and how we deliver it. More recently, this discussion—in the Ford Foundation’s halls and throughout our sector—has focused on how to create impact through the capital market, specifically through impact investing.
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Impact Investing & ESG
Gitterman Says ESG Plays Well on Campus
Gitterman is working with 5,000 college professors to build ESG portfolios, in total valuing approximately $450 million in assets.
Demand for Responsible Investment Pushing Up the Value Chain
As the subject of impact investment has joined the mainstream, clients have increasingly started demanding better disclosures on responsible investment practices.
Unpacking Impact Investing – An Emerging Asset Class
In this interview, Kate Kohler, co leader of Korn Ferry’s Impact Investing Practice, notes that impact investing attracts both highly value-aligned under-30-year-olds, and accomplished financial and investment professionals seeking more fulfilment than what they obtain from ordinary investing.
Nestle Waters North America Announces $6 Million Investment in Closed Loop Fund
This contribution will join the $100 million social impact investment fund, which seeks to find a national solution to the gap in recycling infrastructure and programs in U.S. cities.
Investors See Tangible Returns in ESG Integration
Over two thirds of 475 surveyed institutional investors noted an increase in returns once ESG criteria were integrated into decision making processes.
United States and Europe
Boom Time Again for U.S. Oil Industry, Thanks to OPEC
After the price of oil dropped in 2015 and 2016, OPEC and Russia’s decision to cut their oil production helped push the price of oil back up. As a result, today there are twice as many U.S. oil rigs as there were this time last year.
Consumers Energy Investing Nearly $440 Million to Enhance Safety, Reliability of Natural Gas System
$75 million will be spent to complete 40 improvement projects and replace 67 miles of pipe in southern Michigan; $120 million will go to expansions, improvements, construction, and capacity increases for the natural gas system; and $183 million will go to improvements for pipeline integrity.
US Growth Rate Revised Up to 1.2%
The US economy grew at a faster pace than initially thought in the first three months of the year.
Michigan Good Food Fund Tops $10.5 Million Milestone in Statewide Good Food Investments
The fund provided financing to six food enterprises, which will boost job creation and healthy food access in underserved Michigan communities.
Emerging Markets
South Africa’s Western Cape Declares Drought Disaster
After experiencing the worst shortage in 113 years, water will now be harvested by drilling boreholes to serve key points in the region; over 40 million people have been affected.
Emerging Markets Remain a Good Bet and are Under Owned Despite Strong Gains: Deutsche
As U.S. interest rates rise, investors are looking overseas to generate returns; emerging markets are experiencing high real rates, positive growth, and consistent returns, and are expected to maintain their status as a worthwhile investment destination for at least the next three years.
Incoming Ecuador President Moreno Names Finance, Oil Ministers
The new finance minister is tasked with solving Ecuador’s large fiscal deficit, while the new oil minister must help the nation recover from low oil prices.
Asia Stocks Higher; South Korea Share Soar as Interest Rates Hold Steady
The increase and subsequent gains are the result of the nation’s central bank holding interest rates at a record low, in a vote of confidence in the economy.
Fidelity Launches Two ESG Index Funds
Their new domestic fund is based on the MSCI USA ESG Index, while the international fund is based on the MSCI All Country World Index. Both follow large- and mid-cap companies with high ESG performance relative to sector peers in their respective markets.
Growth-Market Private Equity Investors Look to 2030 Global Goals for Direction
The 17 Sustainable Development Goals focus on “do no harm” investment approaches and represent up to $12 trillion in revenues and savings by 2030.
Public Policy and Investments in Quality Jobs
This document is the second installment of an exploration of the capacity of the impact investing industry, business owners, and policymakers to support job creation. This installment focuses on how public policy can direct capital to quality job-making businesses, and what changes can be made to encourage further job creation.
Annual Impact Investor Survey 2017
The Global Impact Investing Network released their annual survey on the activities of 209 leading impact organizations, presenting investors’ perspectives on current issues and market topics in the impact investment industry.
The OECD’s View on Integration of ESG Issues into Investments – What Next?
The OECD published a report in early May which had various findings: that strong regulatory frameworks can incentivize investors to include ESG factors into their investment governance where they are consistent with financial obligations; that ESG factors can influence investment returns through their impact on companies’ financial performance; and that while ESG related portfolio risks are difficult to measure, tools are being developed to remedy this issue.
Morgan Stanley Investment Management Raises More Than $125 Million for its First Global Impact Fund
The PMF Integro Fund I gives investors exposure to a diverse portfolio which seeks to maximize commercial returns while accomplishing various impact objectives in under served populations.
Five Things to Know About the Social (Impact) Scene in Asia
The CEO of the Asian Venture Philanthropy Network highlighted five themes in the Asian impact industry, including: that momentum is building for investment in social businesses, with successes like Korean startup Tree Planet paving the way; that interest in themes like education and health needs to increase; and that local laws need to evolve to pave the way for social purposes merging with financial objectives.
Trump Crisis Mushrooms on Russia-Probe Report, “Nut Job” Remark
While a senior White House adviser close to President Trump has been identified as a “person of interest” in the federal investigation of Russian collusion, the President is traveling to Saudi Arabia; with this visit he hopes to unify Muslim, Jewish, and Christian leaders against extremism, and to reestablish the U.S. as a global leader.
Macron in Mali: France Will Be “Uncompromising” in Fight Against Terrorists
New French President Macron has reaffirmed the nation’s commitment to fight against Islamic terrorists in Mali. In an attempt to strengthen ties and improve security in the West African country, Macron has met with German Chancellor Angela Merkel in Berlin.
Global Cyber-Attack: Security Blogger Halts Ransomware “By Accident”
The spread of the malware, which was designed to lock users’ data until a ransom was paid, has been halted after a UK security researcher registered an unregistered web address connected to the malware. Existing infected computers are still affected, but the researcher’s registration of the web address activated the “kill switch”, preventing the malware from spreading to any new devices.
Apartheid Still Casts Shadow Over South Africa Agriculture
Despite major segregation legislation for land ownership being repealed, there is still a large disparity in the proportion of white and black farmers who own land in South Africa. The head of the Agri SA cooperative, Omri Van Zyl, asserts that this disparity must be addressed to prevent the nation becoming food insecure in the future.
Mutual Funds Get Crushed by Brazil
Amid accusations that implicate the Brazil President Michel Temer in bribery, mutual funds with large holdings of Brazilian assets have seen huge losses; for example, the Fidelity Latin America Fund’s value dropped 12 percent on Thursday alone.
Argentina and China Sign Contract for Two Reactors
A general contract was signed between Nucleoeléctrica Argentina SA, China National Nuclear Corporation, and China Zhongyuan Engineering Corporation; the agreement affirms that China will contribute 85% of the required financing for the construction of two new power plants in Argentina, as first agreed upon in November 2015.
One-Third of Asia’s Wealth May Change Hands in the Next Five Years
The younger Asian economies will see their “first-ever major inter-generational wealth transfer”; as 90 percent of billionaire fortunes don’t survive longer than two generations, this shift creates a need for more family offices in these economies.
Indonesia, China Consortium Sign 45 bln Loan for Rail Project
The loan from China Development Bank will cover 75% of total costs to build the country’s first fast-train rail link connecting Indonesia’s capital, Jakarta, to its textile hub in Bandung.
