Weekly Impact Investment Market Update: June 30, 2017
Impact Investing & ESG:
The Case Foundation seeks to fill the data gaps in impact investing performance; currently, the foundation can account for geography for only about 58 percent of included companies.
For social entrepreneurs concerned about growing income inequality in the U.S. and around the world, one way to spread the wealth is through employee ownership. According to a new report, while impact investors have yet to embrace the field wholeheartedly, there’s at least some interest in the area.
Liquidnet hosted a forum June 15 at our NYC offices: The Future of Impact to address how to bridge the gap between listening to elite institutions of philanthropy, and hearing the voices and the perspectives of the people who need help.
Ninety-eight percent of institutional investors say a company with strong environmental, social and governance (ESG) initiatives makes for a more attractive investment, according to the newly released white paper, Is Your ESG Report Getting Noticed?, developed by Burson-Marsteller, a strategic communications and global public relations firm, and research firm PSB.
The greatest wealth transfer in history is underway, with $59 Trillion expected to be passed down to baby boomers’ heirs, charities, and taxes, and more than $30 Trillion in wealth set to be transferred from this aging generation to their millennial children.
Big investors, like pension funds and others, have publicly declared that they now consider environmental, social and governance issues to be key metrics of their investment decisions. To pass muster, companies seeking their favor must show a proven track record of responsible stewardship in all three categories.
United States and Europe:
In an address at the U.S. Conference of Mayors’ Annual Meeting in Miami, Michael R. Bloomberg announced the American Cities Initiative, a suite of new and expanded investments that will empower cities to generate innovation and advance policy that moves the nation forward.
BPCE has successfully completed the marketing of the first yen-denominated social impact bond on the Japanese market. This inaugural social issue totaling 58.1 billion yen (approximately €470 million) is intended to refinance loans granted to the clients of Groupe BPCE’s 15 Banque Populaire banks and 16 regional Caisses d’Epargne in the education, healthcare and social sectors.
Tanzania’s current account deficit halved in the year to April, helped by a decline in imports and surging tourism and gold export earnings, the central bank said on Tuesday. The trade gap narrowed to $1.6 billion, from $3.21 billion in the previous 12-month period, the Bank of Tanzania (BoT) said in its monthly economic report.
A China-sponsored, $20 billion (15.72 billion pounds) fund is ready to receive investment pitches. The fund agreed on last year is expected to help finance the construction of railroads. This will link Brazilian soy- and corn-producing areas to ports, potentially boosting Brazil’s economy as it slowly emerges from a deep recession.
China has launched five pilot zones to promote “green finance” and help pay for a war on pollution that is expected to cost at least 3 trillion yuan ($440 billion) a year. The five zones will be set up in the provinces of Guangdong, Guizhou, Jiangxi and Zhejiang, as well as the far western region of Xinjiang.
Emerging market assets move with commodity price trends, and oil prices matter, but “there are still opportunities for investors to earn good carry” despite the grind lower in oil prices, Goldman Sachs says.