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Weekly Impact Investment Market Update: December 8, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

The State of Impact Measurement and Management Practice

This report presents findings from the GIIN’s first comprehensive survey of the state of impact measurement and management (IMM) in the impact investing industry.

Can Index Funds Be a Force for Sustainable Capitalism?

There is growing demand from both retail and institutional investors to align their capital with better environmental and social outcomes, and more resources going into index fund or quasi-indexing products.

From Bezos to Walton, Big Investors Back Fund for ‘Flyover’ Start-Ups

On Tuesday, the fund, called Rise of the Rest, will disclose its investors, which has turned into a Who’s Who of American business.

Why Wall Street’s Finally Pushing to Add Women on Boards

The big money on Wall Street is finally throwing its weight behind boardroom diversity.

ESG Funds Boosted by Women and Millennial Investors

Women and millennials are responsible for the doubling of ESG assets to $8.1 trillion worldwide since 2014 — and you can expect that trend to continue.

In the Middle East and North Africa, the 2030 Global Goals are a $600 Billion Opportunity

Businesses focusing on resilient cities, sustainable agriculture and new energy could propel -more than $637 billion in new business activity and 12.4 million jobs in the region by 2030.

 

United States & Europe
 

Europe Should Have its Own Economy and Finance Minister, says EC

European commission presents proposals aimed at improving Eurozone democracy and resilience to economic shocks.

France is Now the Testing Ground for Europe’s Labor Policies

Many believe that France’s existing labor market code — some 3,000 pages long — has restrained business in the country.

U.S. Payrolls Rise 228,000 While Wages Gain Less Than Forecast

The U.S. labor market has moved past a couple months of hurricane disruptions and returned to its regularly scheduled programming: solid hiring but tepid wage gains that suggest things aren’t as tight as the unemployment rate suggests.

 

Developing Economies
 

What Emerging Market Debt Bubble? Galloway’s Shor Sees No Signs

Galloway Capital Management founder Nathan Shor isn’t seeing signs of a bubble percolating in emerging-market credit.

Where is Latin America Headed?

The recent presidential vote in Chile, along with the Nov. 26 contest in Honduras, signals the beginning of a yearlong electoral cycle in Latin America. By the end of 2018, Colombia, Mexico, Brazil, Costa Rica, Paraguay and perhaps Venezuela will have elected new leaders.

Asia to Stay World’s Fastest Growing Region Through 2030

Asia should remain the world’s economic heavyweight for another 10 years.

Indonesia Economy to Level at 5.1% in 2018

Consumption may recover as other financing sources are explored for its infrastructure projects.

A Borderless Africa? Some Countries Open Doors, Raise Hopes

For years African leaders have toyed with the idea of free movement by citizens across the continent, even raising the possibility of a single African passport.

Weekly Impact Investment Market Update: December 1, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

Brain Gain: Impact Investing in Latin America’s New Wave of Startups

In Mexico, Brazil and Colombia, tech entrepreneurs tackle challenges of financial inclusion, health care and agriculture.

Why ESG Matters for Bonds

The higher a country’s ESG rating, the better its government bonds perform, MSCI has found.

The Promise of Private Sector Grants in an Impact Investing World

Private sector development grants can help reach people in communities where many investors won’t go.

 

United States & Europe
 

Forecasts for U.S. Growth are Too Pessimistic

Those who wait for changes to tax policy to upgrade their estimates for next year are going to end up waiting too long.

Private Banking Disrupts Italy’s Wealth Management Market

As supply and demand models change in Italy’s dynamic wealth management industry, private banking is emerging as a key disruptor.

What the Future of Work Will Mean for Future Jobs, Skills, and Wages

As many as 375 million workers around the world may need to switch occupational categories and learn new skills.

 

Developing Economies
 

The Global Economy in 2018

The global economy will confront serious challenges in the months ahead, and looming in the background is a mountain of debt that makes markets nervous – and that thus increases the system’s vulnerability to destabilizing shocks.

Emerging Markets Debt is so Hot, Some Investors Can’t Get Enough

In their hunt for yield, some investors have been venturing into offerings as exotic as Tajikistan’s sovereign bond or Iraq’s first sovereign debt sale.

Distributed Energy is a $40 Billion Industry in Developing Countries, Report Finds

Distributed energy outside the OECD is a $40bn industry, new research has found.

Wall Street’s Bulls Are Rushing to the Land of Gauchos: Argentina

Their return marks a sharp comeback in confidence for one of the world’s worst economies.

Kenya Seeks Proposals for $2 Billion Eurobond Sale

Kenya’s government is seeking proposals from banks about a possible $2 billion Eurobond offering in the first quarter of 2018.

Rwanda Among Top 10 Countries with Good Governance Record

Rwanda has been ranked the best ranked country in eastern Africa for good governance.

Zambia Says ‘Must Have’ $1.3 Billion IMF Loan in Place in 2018

Zambia expects to host a mission of the IMF before the end of the year and hopes to have a $1.3 billion loan deal in place in early 2018.

Weekly Impact Investment Market Update: November 22, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

When It Comes to Investing in the Future, Go with Renewable Energy over Bitcoin

Bitcoin is going gangbusters and getting all the attention, but it’s far easier to understand the dynamics in the energy markets, and they show that renewable energy is not going backward again.

Impact Investing is Being Democratized – and Marginalized Communities are Benefiting

The first comprehensive snapshot of community investing in the United States points to increased diversity and inclusion for startup funding. Foundations and impact investors should pay attention.

Schwab IMPACT: Can ESG be an Advisor’s Niche?

So far, there has been little uptake among advisors or clients for ESG funds.

 

United States & Europe
 

Making Manufacturing Great Again Would Add $530 Billion to GDP

A new report suggests investments in today’s manufacturing operations could carry hundreds of billions of dollars in economic payoffs.

Commission Calls for Reforms to Address Wage Stagnation

The European Commission told member states on Wednesday to prioritize policies that support wage growth, in light of the economic pain still suffered by many Europeans.

How to Build on Europe’s Economic Recovery

Economic growth in Europe is picking up, political uncertainty has diminished, and the vision of an “ever-closer” regional union is energizing some new constructive thinking in core countries. Translating this into sustainable prosperity, however, is far from automatic, and these improvements need to be followed by structural changes in four key areas.

 

Developing Economies
 

Emerging Markets in Focus: Chile, S. Africa, Hungary, India

A list of emerging markets to keep an eye-out for.

Tanzania: Construction Sector Vital in Industrialization

Local contractors need to observe ethics and professional standards to compete with foreign contractors in major projects.

Ex-Leader Wins First Round of Chile’s Presidential Vote

Former President Sebastián Piñera of Chile, a conservative billionaire, on Sunday won the first round of an election to choose a successor to President Michelle Bachelet.

Weekly Impact Investment Market Update: November 17, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

Government Launches Emerging Market Impact Investment Fund

The $40 billion emerging markets impact investment fund will support SME’s that generate positive social and development outcomes for poor communities in the Asia-Pacific.

Impact Investing Taking Root in Asia

In a bid to help address challenging global circumstances, a growing number of Asia’s high net worth and ultra-high net worth individuals are looking to increase their portfolio allocation to impact investing.

Blending Finance to Crowd in Private Capital for Climate Action and the Global Agenda

Meeting the Paris climate goals is essential for the Sustainable Development Goals as well.

U.N. Secretary-General: End Fossil Fuel Investment and Put a Price on Carbon

Guterres calls for the world to honor its yearly $100 billion pledge to finance the low-carbon transition.

A New Model of Collaborative Philanthropy

A new effort called Co-Impact is bringing together donors from around the world to better identify, align, and support opportunities for systems-level change.

World’s Biggest Wealth Fund Wants Out of Oil and Gas

The $1 trillion fund that Norway has amassed pumping oil and gas over the past two decades wants out of petroleum stocks.

Evidence on the Financial Performance of Impact Investments

Impact investing is a growing movement capturing the attention of investors across the world. But too much capital is still sitting on the sidelines, which results in part from suspicions around financial performance.

EU Considering Sustainable Investing as Fiduciary Duty for Investors

The European Commission is considering whether to clarify that institutional investors’ duties include taking into account sustainability risks.

Designing a Global Financial System Fit for (Sustainable) Purpose

A roadmap for climate- and SDG-finance from the United Nations and the World Bank reflects a shift that’s well underway.

 

United States & Europe
 

US Unemployment Benefits Rise 10,000 to 249,000

The number of Americans filing applications for unemployment benefits edged up again last week to a still-low 249,000.

Euro Zone Growth, Eclipsing U.S. Economy, Set to be Best in Decade

The euro zone’s annual economic growth rate outstripped that of the United States in the third quarter setting up 2017 as the best year for the currency area since financial markets crashed a decade ago.

Euro Economy is Heading Towards a Golden Period

The 19-nation euro-zone bloc is already enjoying the strongest growth in a decade and now economists are declaring that it’s heading toward a golden period of low-inflationary expansion.

Central Europe Grows at Fastest Rate in 9 Years

Central Europe’s fastest expansion for nine years and strong growth in Germany spurred the EU’s vigorous economic recovery in the third quarter.

 

Developing Economies
 

African Economic Growth Rides on Wireless Rails

A telecommunications boom is lifting an industry and a continent.

Nigeria’s Senate Gives Go-Ahead for $5.5 Billion Foreign Borrowing

Nigeria will move ahead with plans to borrow $5.5 billion from foreign investors after the Senate on Tuesday approved President Muhammadu Buhari request for the move.

Latin America Demonstrates Leadership at COP23

Latin American countries, regions, and cities demonstrated clear ambition and leadership at the United Nations Climate Change Conference (COP23) held in Bonn, Germany over the past two weeks.

Colombia’s Economy Grew 2% in Third Quarter Versus Year Before

Cardenas announced the lower growth estimate after the government’s statistics agency DANE reported that the economy expanded 2 percent in the third quarter compared with the same period a year ago.

How Asia Has Become the World’s Manufacturing Hub

Economic development always starts with using what natural resources are available and making a start in agriculture. But countries don’t grow by staying put.

Malaysian Economy Expands at Fastest Pace in More than 3 Years

Malaysia’s economy grew at the fastest pace in more than three years in the third quarter, supported by resilient domestic demand and a manufacturing sector that’s benefiting from booming global trade.

Philippines Economy Sizzles in Forecast-Beating Third-Quarter Growth

The Philippine economy clocked forecast-topping growth of 6.9% in the third quarter, making it one of Asia’s fastest growing and building expectations for a near-term increase in interest rates.

Weekly Impact Investment Market Update: November 10, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

Impact Investors Can Profit From Infill Real Estate Development and Do Well by Doing Good

There have always been investors who value profitable opportunities that create a positive social and economic impact on communities and the environment.

Advisors Failing to Talk ESG with Clients

Investors of all ages are interested in environmental, social and governance investing—or ESG—but advisors apparently are not bringing up the subject with them.

Argentina Wants a Slice of the Impact Investment Pie

Attracting impact investors is part of Argentina President Mauricio Macri plan to rebuild the country’s investment environment.

‘Less Talk, More Action’ to Boost Impact Investing in China

The philosophy behind impact investing isn’t lost on China, but the tendency to over-hype the sector could be.

Forbes Launches Impact Investing Community
Forbes Media announced today the launch of its invite-only Impact Investing Community which will convene the world’s most influential people – entrepreneurs, celebrities, family offices, athletes, investors, musicians, next-gen leaders, and creators – to scale impact investing and influence culture.

 

United States & Europe
 

N.Y. Fed Sees U.S. Economy Growth Near 3.2 Percent in Fourth Quarter

The New York Federal Reserve on Friday kept its view on U.S. gross domestic product growth for the fourth quarter near 3.2 percent given the dearth of economic data this week.

Goldman Sachs CEO: China’s Economy Will Surpass the US, and by One Measure it Already Has

Goldman Sachs Chairman and CEO Lloyd Blankfein told CNBC on Thursday it’s inevitable that the Chinese economy will be bigger than the U.S. economy based on the sheer population disparity alone.

Europe’s Economic Dilemma

Europe faces a serious problem. Although economic activity has recently increased, the euro zone has lost the ability to respond to the next downturn when it happens, as it inevitably will.

 

Developing Economies
 

Managing Climate Impacts Through 2050

A new ranking from Thomson Reuters charts the top 250 corporate producers of greenhouse gases.

Brazil Begins Efforts to Plant 73 Million Trees in the Amazon

The experiment in reforestation involves spreading native seeds instead of planting saplings.

China Makes Historic Move to Open Market for Financial Firms

China took a major step toward the long-awaited opening of its financial system, saying it will remove foreign ownership limits on banks while allowing overseas firms to take majority stakes in local securities ventures, fund managers, and insurers.

Weekly Impact Investment Market Update: October 27, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

The Limits of ESG Screening

Governance is the most important factor in ESG investing. But can you really screen for it?

Companies Taking ESG Seriously are Long-Term Winners

Inequality and climate change have created a challenging backdrop for companies, meaning a failure to incorporate these principles will provide a poor return for investors.

In Depth: ESG Investing is Here to Stay

As asset owners’ fervor surrounding ESG and impact investing intensifies, sustainable investing has emerged as an integral part of investment frameworks.

25 Universal Assets Owners That Could Put a Dent in the SDG Financing Gap

Canada had the most leaders on a list of the world’s top 25 responsible asset allocators, with six asset managers representing nearly $1 trillion under management.

Global Tree Cover Loss Rose 51 Percent in 2016

Global tree cover loss reached a record 29.7 million hectares in 2016, according to new data from the University of Maryland released today on Global Forest Watch.

Business Are Facing a New Reality. These Are the Ones that are Succeeding.

Evidence is mounting to show that the frequency and ferocity of extreme weather events is intensifying on a global scale. From severe droughts to powerful storms, we are living in an increasingly changeable, uncertain, and unpredictable world.

 

United States & Europe
 

US Workforce to Add 11.5 Million Jobs by 2026

The U.S. economy is expected to add another 11.5 million jobs by 2026, as an aging population and longer life spans raise the need for healthcare providers. The total U.S. workforce is expected to grow to 167.6 million people.

U.S. Economy Grew at 3% Rate in 3rd Quarter, Despite Storm

In a show of resilience, the American economy grew at a solid pace in the latest quarter despite the impact of the hurricanes in Texas and Florida.

Eastern Europe’s Major Economies Are Having an Underappreciated “Goldilocks Moment”

Germany has long been the engine that drives the EU’s economic growth, but for the past few years it has been outpaced by countries further east—most notably Poland, Romania, and the Czech Republic.

Catalonia Independence: Rajoy Dissolves Catalan Parliament

Spanish Prime Minister Mariano Rajoy is dissolving the Catalan parliament and calling snap local elections after MPs there voted to declare independence.

 

Developing Economies
 

Worldwide Debt More Than Triple Economic Output as Central Bank Shift Looms

Worldwide debt has risen to a record $226 trillion – more than three times global annual economic output – and firms in more countries are struggling to service loans.

Emerging-Market Debt Loses Some Local Appeal

Local-currency debt of developing nations has hit a rough spot after gaining nearly 12 percent during the first nine months of the year.

By 2030, the Number of 15-to-24-Year Olds Will Increase by 100 Million –Where Will They Find Work?

Between 2015 and 2030, the number of 15- to 24-year-olds is expected to increase by 100 million – almost all of them in sub-Saharan Africa and most of them in rural areas.

A $2.9 Billion Tax Hole Looms Over South Africa’s Finance Minister

South African Finance Minister faces a gaping budget hole — and will have to consider cutting spending, raising taxes and selling state assets if he wants to avoid further ratings downgrades.

Tanzania President Names Tax Expert as Central Bank Governor

Tanzania’s new central bank governor will be tax law professor Florens Luoga.

Zambia’s Independence and the State of Agriculture

Zambia’s agriculture has a special place in the country’s political and economic agenda.

Weekly Impact Investment Market Update: June 16, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Impact Investing

A Social Investment Ecosystem Emerges in Vietnam, Cambodia and Myanmar

This interview with Nguyn and Aarti Mohan discusses highlights from their report on the landscape for impact investing in 14 Asian countries.

3 Ways Millennials are Influencing Global Investing

Millennials contribute to global investment through peer-to-peer collaboration, new entrepreneurial ventures, and socially responsible impact investing.

The ’23 Fund’: A New Model for Growth Capital in the World’s Poorest Countries

This article explores a model for a fund dedicated to growth capital equity investments in the world’s 23 poorest countries.

“In the Future, All Investing will be Impact”

The symposium discussed the possibility of impact investing being woven into traditional investment firms’ existing practices.

Investing in Women: New Evidence for the Business Case

The IFC’s report shows that closing gaps between men and women in the private sector leads to business benefits and better development outcomes alike.

ESG

Why It Matters that S&P 500 Companies Report on ESG

Companies which publish sustainability reports are more likely to experience lower operating expenses, greater competitive advantage, and gives them a leg up in the marketplace for their products and services.

High ESG Performance Translates Into High Financial Performance

Chris McKnett, Managing Director of State Street Global Advisors, and Mirtha Kastrapeli, Global Head of State Street’s Center for Applied Research, discuss the benefits and challenges of implementing an ESG framework in an investment portfolio.

United States and Europe

United States

Fed Raises Rates, Maintains Forecast for One More Hike

This marks the third increase in the Federal Reserve interest rate in six months in an attempt to normalize the government’s balance sheet.

Arlene Foster Calls for ‘Sensible Brexit’

The Democratic Unionist Party leader seeks to work with Northern Ireland and the Republic of Ireland to craft a Brexit which reinstates Irish institutions and emphasizes power sharing.

Emerging Markets

New Energy Outlook 2017

Focused on the electricity system, NEO combines the expertise of over 80 market and technology specialists in 12 countries to provide a unique view of how the market will evolve.

Africa

Tanzania: Raising Agricultural Ministry’s Budget to Benefit Rural Folks

The agriculture industry provides an income for 65 percent of the Tanzanian population, so any efforts to improve the country’s living standards must seek to fight climate change and improve the economic climate for farmers.

Tanzania Central Bank Announces New Capital Rules for Banks

The new capital requirements are part of efforts to implement Basel III guidelines, which were introduced after the 2008/2009 financial crisis.

Latin America

Colombia Farc Rebels ‘Committed to Disarmament’

The United Nations Mission in Colombia says it has received 40% of the weapons registered by the Farc rebel group, a figure which falls short of the 60% they should have received by now.

Southeast Asia

India Cedes Best-Performing Emerging Market Tag to South Korea

Emerging markets have outperformed developed markets in 2017 so far, with Indian markets up 24 percent and South Korean markets up 25 percent.

 

Weekly Impact Investment Market Update: June 9, 2017

Posted on by MBC Strategic

Impact Investing & ESG:

Impact Investing

Impact Measurement: How Much Is Too Much? How Much Is Not Enough?

This article is the third installation of a three-part series exploring why ESG reporting is important, how it’s reported, and how much reporting investors should expect.

Sustainable Businesses can Unlock US$5 Trillion in New Market Value in Asia by 2030

A report entitled “Better Business, Better World Asia” was released from the Business & Sustainable Development Commission. The report breaks down Asia’s economy into four segments, and explores which development opportunities are most prevalent in each.

Fellow Travelers: Bringing Emerging Markets and Impact Investing Back Together (Part 1)

This article is the first installment of a three-part series exploring the relationship between impact investing and emerging markets. This installment deconstructs three attributes of impact investments: definitions, scope, and returns, and focuses on defining terms.

Fellow Travelers: Impact Investing in Emerging Markets is Growing but Not Fast Enough (Part 2)

This second installment focuses on the scope and returns of investing in emerging markets. Almost half of emerging market investors invest in companies in the growth stage, while developed market investors invest primarily in mature, private companies.

Fellow Travelers: Where Impact Investing in Emerging Markets Goes from Here (Part 3)

This final installment focuses on ways to integrate impact investing and emerging markets going forward. Development finance institutions should center their products around investor feedback; documentation and reporting should become standardized; and capital should be increasingly provided through debt, as in developed markets, rather than through equity.

Foreign Investors to Pour Nearly $1 Trillion into Emerging Markets in 2017: IIF

Now that the risk of trade friction between the US, Mexico, and China has decreased, foreign investment is expected to reach $970 billion, a 35 percent increase from last year.

Impact Investing Get a B+ on its Annual Report Card (Podcast)

This podcast explores how impact investing must grow and improve to keep up with global financial markets. Currently there are $114 billion in impact assets under management, which is 47% larger than the 2015 total of $77 billion, and 90% larger than the 2014 total of $60 billion.

ESG

Evan Harvey, Nasdaq: ESG Reporting – Six Reasons Why

This article explores six reasons to report ESG factors: overcoming framework and questionnaire fatigue, gaining competitive advantage, broadening investor outreach, redefining internal value metrics, boosting recruitment and retention, and true enterprise risk management.

United States and Europe

United States

Oil Settles at $45.72, Down 5.1% at 5-Week Low, after Big US Stockpile Rise

Crude stocks in the US grew 3.3 million barrels to 513 million barrels, which contradicted the prediction of a drop of 3.5 million; this caused oil prices to drop by nearly 5 percent.

Europe

UK Election 2017: Conservatives Lose Majority

Theresa May called the election to try to increase her leverage in EU discussions on Brexit; instead, her party lost seats, leading Britain into uncertainty about future negotiations.

Emerging Markets

Africa

Price of Corn, a Kenyan Staple, Soars

Drought and corruption are seen as catalysts for the spike in corn prices, which brought the staple out of reach for many working-class Kenyans.

Asia

Indonesia May See up to $200 Billion in Investment after S&P Upgrade: Minister

Indonesia may see an increase of up to $200 billion in investment after S&P Global Ratings upgraded the nation’s sovereign ratings to investment grade.

Weekly Impact Investment Market Update: June 2, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Impact Investing

How the Ford Foundation Is Raising the Stakes on Impact Investing

This interview with Xavier Briggs, Ford Foundation’s VP of Economic Opportunity and Markets, discusses the foundation’s investment strategy, including its criteria for selecting impact funds in which they invest.

Sorting Out Impact Investing in a Changing Market

In this interview, Robert Webster, Managing director at Small Enterprise Assistance Funds (SEAF), discusses his perspective on impact investing, the relationship between impact and financial returns, and how his group selects SMEs in emerging markets to invest in.

Why Impact Investing Has Reached a Tipping Point

$25 trillion is invested with consideration to ESG factors; from 2014 to 2016, sustainable, responsible, and impact assets have grown by 33% in the United States. For impact investing to go mainstream, the gap between interest and execution must be bridged; in 2016, 58% of respondents indicated interest in impact investing products, while far fewer were actually investing in the products.

How Impact Investors Can Change the Status Quo for Smallholder Farmers

2.5 billion people living on less than $4 per day are dependent on smallholder farming; to remedy this, investments can be made in emerging inclusive outgrower schemes, eco-friendly commercial farms, specialized input and extension service providers, and direct-trade importer businesses.

Road Work Ahead: Smoothing the Flow of Impact Investing with Lane Markers and Turn Signals

As more investors join the market for impact investing, impact intermediaries will need to bring greater clarity to the array of services they offer.

Opportunities for Investing in Inclusive Growth

Morgan Stanley’s Institute for Sustainable Investing has created a report and an analytical tool for investors to explore different opportunities for inclusive growth investment.

ESG

Withdrawal from Paris Accord Will Spur Interest in ESG, Advisers Say

If government regulations regarding environmental responsibility are reduced, investors will have a bigger role to play in advocating for improved environmental practices.

United States and Europe

United States

Oil Slides as U.S. Climate Withdrawal Compounds Glut Concerns

The President’s withdrawal from the Paris agreement could mean that the United States’ oil production could expand more quickly than its current rate; as of the end of May, U.S. crude oil production has increased by 500,000 barrels per day (bpd) from last year’s rates, reaching 9.34 million bpd.

U.S. Department of Energy Authorizes Additional Liquefied Natural Gas Exports from an Offshore Project

Exports reaching 1.8 billion cubic feet per day of natural gas from a Louisiana natural gas terminal in the Gulf of Mexico have been approved, causing the U.S. to progress further into becoming a net exporter of natural gas.

US Adds Fewer Jobs than Expected

At 4.3% as of May, US unemployment is at its lowest since 2001; however, only 138,000 jobs were created that month, which is 40,000 less than economists had expected.

Europe

Brighter Skies over Eurozone as Growth and Employment Pick Up

Overall unemployment for the European Union is at its lowest in eight years, while economic growth was at 0.5% in the first quarter. The EU projects a total 2017 growth of 1.7%, compared to 2016’s growth of 1.8%.

 

Emerging Markets

Latin America

World Bank Planning $2 bln Green Bonds for Peru – Econ Minister

While Peru has yet to develop a reforestation industry, the IFC is preparing to do an emission of approximately $2 billion in green bonds.

Nestle Investing in Factories, Creating 2,900 Jobs in Latin America

The company looks to tackle social issues in one of its strongest markets, creating 2,900 jobs for young people and providing training for improving job-hunting skills over the next three years.

Colombia’s Peace Agreement Can Give Fillip to Inclusive Growth

The IMF projects growth to increase gradually over the next five years, with approximately 3.5% growth. This will be sustained by non-commodity exports, infrastructure spending, and improved confidence stemming from the peace agreement.

Asia

Rural India Needs Solar Power for More than Just Lighting, Study Finds

While India plans on adding 10,000 small scale solar power grids across the nation over five years, India still needs more energy to help launch new businesses, increase time spent working or studying, or make any substantial quality of life improvements.

Africa

Kenya Inaugurates Chinese-Built Railway Linking Port to Capital

The $3.2 billion railway is its biggest infrastructure project in 50 years, and was completed months ahead of schedule. The railway is part of China’s “One Belt, One Road” initiative which seeks to improve land and maritime trade routes between China and Europe, Asia, and Africa.

OPEC Oil Output Rises in May as Cut-Exempt Nigeria, Libya Pump More

Decreased output in Angola and Iraq helped OPEC adhere to its six month supply cut deal, but after sustained output increases from Libya and Nigeria OPEC will prolong its deal until March 2018.

Weekly Impact Investment Market Update: May 29, 2017

Posted on by MBC Strategic

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.