Filters: Emerging Markets

Weekly Impact Investment Market Update: August 11, 2017

Posted on by MBC Strategic

Impact Investing & ESG

What Millennial Investors Want: Convenience, Control and a Conscience

With their habit of viewing life through a smartphone, millennials have already disrupted industries like retail, the media and transportation. Now they’re driving shifts in investment markets with a wave of new technologies and products that cater to their demands. This next generation of investors wants sophisticated platforms that are powerful and convenient — and make the world a better place.

Millennials Drive Growth in Sustainable Investing

More investors are interested in sustainable investing and adopting its principles as part of their strategy, but Millennials are leading the charge, according to the Institute for Sustainable Investing’s 2017 “Sustainable Signals” report. As with the previous report in 2015, this latest survey of 1,000 total active individual investors tracked both how investors perceive sustainable investing and whether they are acting on that interest.

Lean Data: The “How” of Measuring Impact at Lower Cost for Higher Value

According to an annual survey of impact investors, unsophisticated measurement practice is one of the five biggest constraints to growing the impact investing market. With so many frameworks out there, why aren’t we making more progress?

Smallholder Farmers are Investable

Inclusive agriculture is defined as agricultural markets and value chains that are inclusive of the world’s half-billion smallholder farmers. Such models link these farmers with larger economic actors, ultimately improving agricultural productivity, expanding markets and trade, and increasing the economic resilience of vulnerable rural communities. A recent review by the Initiative for Smallholder Finance (ISF) of investments in smallholder agriculture shows a maturing market with clear investment opportunities at different stages of the agricultural value chain and varying stages of financing.

The $500 Million Blue Haven Initiative, Unplugged (Podcast)

The Blue Haven Initiative was one of the earliest family offices to commit itself to 100% mission-aligned investing. At more than $500 million, it’s one of the biggest to make that commitment. And it’s one of the first to share its challenges publicly.

Is Socially Responsible Value Investing the Future?

We can peer into the future value investing landscape by examining the performance returns in funds like Generation Investment Management and understanding the demand for socially responsible investments (SRI) from investors. Generation has delivered long term returns to support its thesis that value investing with a sustainability overlay can match traditional value investing performance returns. And the recent launch by leading robo-advisor, Betterment, of SRI portfolios may be a sign of increasing investor demand for investments that have a social-good overlay.

ESG

In ESG We Trust – The Risk and Rewards of ESG Investing

According to the Bank of America Corporation, ESG investing has grown by more than 97 percent globally in the past 20 years. In a dollar value, the number has gone from tens of billions to hundreds of trillions, and the number of investment funds has increased from 10s to 1000s.

Gender and ESG – “More Women” Means “More Money”

In this interview, Niklas Ekvall of AP4 and Richard Gröttheim of AP Fonden 7 discuss how gender diversity can positively affect ESG integration and performance.

 

United States & Europe

US Economic Expansion to Last Another Two Years or More: Reuters Poll

The U.S. economic expansion will last at least another two years, according to a majority of economists polled by Reuters who also forecast growth will not accelerate the way the Trump administration has predicted. The recovery from the devastating 2007-2009 financial crisis has been unusually lengthy. The latest growth stretch has already lasted 96 months, and if the poll predictions come true it would mark the longest economic expansion in more than 150 years.

Developing Economies

$515 Billion in Foreign Investment Expected for Developing Asia in 2017

Developing Asia is expected to witness a 15 percent increase in foreign direct investment (FDI) inflows in 2017, following a dramatic 22 percent drop in such inflows in 2016, according to the World Investment Report 2017, published by the United Nations Conference on Trade and Development (UNCTAD).

 

Weekly Impact Investment Market Update: August 4, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Toniic Podcasts with Impact Investors

There are exploitative elements of capitalism, as well as innovative and regenerative elements. In this podcast, Thomas Van Dyck of the SRI Wealth Management Group details how he taps into the latter as he navigates the often grey areas of impact evaluation and engages with clients, shareholders, and other stakeholders in aligning their values with their investment decisions.

The Millennial Marketplace and the Propagation of the Triple Bottom Line

Backed by an impressive $2.45 trillion in spending power, millennials now represent the world’s most important consumer category. Companies are paying attention, and they’ve gathered an impressive amount of data on millennial buying behavior. They’re acutely aware that the majority of millennial consumers — roughly 70% — will spend more on brands that support a cause they care about.

Culture of Transparency: Putting Impact Investing on the Map

The impact investing field has grown leaps and bounds since the Global Impact Investment Network first started tracking the growth of the field in 2010. Networks like Toniic and The ImPact have brought together a range of interested investors who want to learn more about allocating for impact. Even dedicated impact funds are attracting LPs with diverse motivations. To truly scale impact investing, we need to continue to engage in discourse around the challenges and solutions we are encountering in our everyday work.

OpenInvest Launches First Impact Investing Category to End Human Trafficking

OpenInvest, an impact investing platform empowering individuals to drive social change with their dollars, today announced the launch of the first impact investing category that works to end forced labor and human trafficking. Using data and analysis provided by JUST Capital, a nonprofit organization that measures companies against the priorities of the American people, 20 publicly traded companies were identified that have demonstrated the highest commitments to fighting forced labor in their supply chains, among other human rights abuses.

J.P. Morgan will Facilitate $200 Billion in Clean-Energy Financing by 2025

The bank is making what it calls “the largest commitment by a global financial institution” to facilitating clean energy financing. That bank did about $15 billion in such deals in 2015, including green bonds, tax-equity financings, project financing and even IPOs; the new pledge would boost that to about $22 billion a year.

ESG: the New ABCs of Portfolio Management?

Environment, social, and governance (ESG) factors provide an analysis framework for deep-dives into three pillars: Environmental, Social and Governance. These factors may have a material impact on the financial performance of the company. Unlike Socially Responsible Investment (SRI), ESG does not necessarily involve the exclusion of some sectors, such as weapons, tobacco, gambling, alcohol and animal testing. Instead, it offers a framework to analyse an investment opportunity from a different forward-facing perspective.

 

United States & Europe

US Economy Creates 209,000 Jobs in July

The unemployment rate edged lower to 4.3%, matching May’s figure which was the lowest since 2001. Employment in food services and drinking places rose 53,000 – that sector has now added 313,000 jobs since July 2016. Employment in health care and professional and business services also saw strong growth.

Developing Economies

Zambia’s Rural Homes to be Equipped with Pay-To-Own Solar Home Systems Expected to Help Eliminate Use of Candles

Energy and financial services firm Fenix International is working to deploy pay-to-own solar home systems in Zambia leveraging telecommunications giant MTN’s mobile money platform. In partnership with the Swedish Embassy in Zambia, which committed nearly $3-million to the project up to 2020, Fenix is taking its first step in expanding its flagship product, ReadyPay Power, across Africa, after successful deployment in Uganda.

Uganda: Tanzania, Uganda Sign Rural Electricity Deal

Tanzania and Uganda have signed yet another Memorandum of Understanding (MoU) for the supply of electricity to villages along the Uganda-Tanzania border. The signing ceremony which was held in Bukoba, Kagera Region at the weekend, comes just four days before President John Magufuli and his Ugandan counterpart, Yoweri Museveni, lay a foundation stone for the construction of the East African crude oil pipeline from Hoima in Uganda to Tanga Port in Tanzania.

26-Year-Old Founder Wants to Change Payments in Africa

26-year-old Nigerian entrepreneur Iyinoluwa Aboyeji wants Silicon Valley to fund a future where Africa is included. Aboyeji is the cofounder of Flutterwave, a payments API that makes it easier for banks and businesses to process payments across Africa. The service allows consumers to pay for things in their local currency; Flutterwave takes care of integrating banks and payment-service providers into its platform so businesses don’t have to take on the expense and burden.

PERU: Economy to Grow More than 4% in 2018 – Kuczynski

The Peruvian economy will grow at a rate of more than 4% next year, returning to the path economic dynamism, despite the natural disasters caused by the El Niño climate phenomenon and corporate corruption investigations, said the South American country’s president Pedro Pablo Kuczynski in a speech.

UN Latin America Commission Forecasts Low but Positive Growth for Region in 2017

The Economic Survey of Latin America and the Caribbean 2017 foresees that, after two years of contraction, nearly all countries in the region will experience, on average, 1.1 per cent positive growth rates in 2017 – except for Venezuela, whose gross domestic product (GDP) is seen falling -7.2 per cent; and Saint Lucia and Suriname, which is forecast to contract -0.2 per cent.

Emerging Markets AUM from 0.4T to $11.2T in 25 Years

The scale of the growth in emerging markets over the past quarter-century has been outstanding. During this period there has been close to 30 fold increase in US dollar emerging market equity capitalization from $0.4 trillion in January 1992 to around $11.9 trillion today, according to research from Credit Suisse.

Weekly Impact Investment Market Update: July 28, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Why Impact Investing Needs to Go Mainstream

In a conversation with Knowledge@Wharton and Nick Ashburn, Durreen Shahnaz says that of all social impact areas, women’s livelihood is one of the toughest and most important issues. “If you don’t have one half of the equation there, how do we move forward?” READ MORE…

U.S. Impact Investing Alliance Launches to Scale the Practice of Impact Investing

The U.S. Impact Investing Alliance (“Alliance”) today announced the launch of its expanded network of impact investing leaders dedicated to advancing this growing market. The Alliance is introduced today with a broadened mandate that includes advocating for a favorable policy environment, catalyzing the flow of impact capital and growing the movement of impact investing in the U.S. and globally. READ MORE…

Unlocking Blended Finance for the 2030 Global Goals

Private capital can indeed deliver public goods. We need much, much more capital from individual, institutional and other commercial investors to fill the estimated $2.5 trillion annual gap in financing for sustainable development. The good news: we increasingly know the blends that can attract it. READ MORE…

“Clients Seek Investments with Environmental, Social Value”

Currently, Switzerland’s UBS is committed to making $1 billion a year in social and environmental impact investments over five years, an annual percentage that amounts to less than 0.6% of its capital under management and about 3% over the entire period. READ MORE…

On the ESG Horizon: Achieving a Global Standard

ESG integration was once a topic left to the public relations department of the average organization. Now that institutional investors are seeing how responsible integration positively affects a company’s valuation, talks of mandatory government regulation around the world are increasing. READ MORE…

An Insider Explains Why Wall Street’s Big Money Focus on Sustainability is Here to Stay

A recent survey of 320+ institutional investors found broad support for ESG-related themes, with 80% of respondents stating that companies have not considered environmental and social issues as core to their business and that generating sustainable returns over time requires a sharper focus on ESG issues. READ MORE…

United States & Europe

US Second-Quarter-Growth Accelerates to 2.6%

The US economy gathered speed in the second quarter of the year, growing at an annualised pace of 2.6%. The pick-up was helped by consumer spending in the quarter expanding at a pace of 2.8%, and businesses stepping up spending on equipment. READ MORE…

Developing Economies

OPEC Moves to Cap Nigerian Oil Output, Boost Compliance

OPEC moved on Monday to cap Nigerian oil output and called on several members to boost compliance with production cuts to help clear excessive global stocks and support flagging prices. READ MORE…

Fed Balance Sheet Plan May Equal Three Rate Hikes for Emerging Markets: IIF

The U.S. Federal Reserve’s plan to reduce its $4.5 trillion balance sheet could exert the same squeeze on emerging markets next year as three interest rate hikes, an Institute of International Finance (IIF) study shows. It said it also has the potential to reduce stock and bond flows by as much as $25 billion. READ MORE…

IMF World Economic Outlook, April 2017: Gaining Momentum?

This most recent installment of IMF’s World Economic Outlook stresses the need for credible strategies in advanced economies and emerging market and developing ones to tackle a number of common challenges in an integrated global economy. READ MORE…

Emerging Markets: What Has Changed Ahead of July 23, 2017

This report summarizes Emerging Market trends, specifically in Turkey, South Korea, South Africa, Brazil, and Mexico. READ MORE…

Copper Trumps Politics as Investors Take Shine to Zambian Assets

The yield on Zambia’s $1 billion Eurobonds due April 2024 have fallen 135 basis points this year to 7.55 percent on Wednesday. The southern African nation’s currency has appreciated 12 percent against the dollar in 2017, making the kwacha the continent’s best performer after Mozambique’s metical. Copper prices are at their highest in more than two years. READ MORE…

Weekly Impact Investment Market Update: July 21, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Deadline 2030: Less than 5,000 Days (and Counting) to Meet Global Goals

The so-called “private sector” was the star of the High-Level Political Forum, a two-week session in which countries and agencies are to take stock of the progress toward the 2030 goals. A main challenge is to see the “financing gaps” as “investment opportunities,” as sustainable-development-is-good-business takes hold as conventional wisdom.

What We Know about Bain Capital’s $390 Million Double Impact Fund

The tipoff that impact investing is indeed reaching a new stage in the capital markets came when Deval Patrick described the $390 million Bain Capital Double Impact Fund as “a small first fund.”

Japan’s ‘Social Impact Bond’ Gets First Batch of Investors

Japanese lender Sumitomo Mitsui Banking Corporation and other investors are set to invest some 30 million yen ($267,714) in a new program that will see private investments help fund public social services. The core unit of Sumitomo Mitsui Financial Group will team up with Japan Social Impact Investment Foundation (SIIF), which launched this month Japan’s first “social impact bond” to fund a Kobe city program on chronic kidney disease.

 

ESG

Morningstar Partners to Drive Adviser ESG Integration

Morningstar is working with a global financial services industry body to better prepare financial advisers for incorporating sustainable investing into advice practices. Collaborating with the US-based Money Management Institute, the program focuses on the incorporation of ESG factors into investment portfolios and their impact.

 

Want More Millennial and Female Clients? Tout ESG Funds

“Female advisors are more likely to express interest in ‘responsible’ investing strategies than their male counterparts,” a report from Eaton Vance’s second quarter Advisor Top-of-Mind Index stated. “Forty-six percent say responsible investing is an important part of their practice, compared with 38 percent of male advisors, while 44 percent expect to increase their responsible investing recommendations in 2017, compared with 35 percent of male advisors.”

 

United States & Europe

Here’s a Really Good Sign the Economy is Rebounding

Residential construction rebounded from a three month decline in June with housing starts increasing to 1.22 million, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. The number of housing projects started last month shows an 8.3% increase from the May figures and a 2.1% increase from June of last year.

Eurozone Businesses Growing at Fastest Rate in Nearly Six Years

IHS Markit’s Flash Composite Purchasing Managers’ Index – seen as a good guide to growth – climbed to 56.7 from February’s 56.0, its highest reading since April 2011. Anything above 50 indicates growth.

 

Developing Economies

Mexico Launches Pioneering Scheme to Insure its Coral Reef

A stretch of coral reef off Mexico is the testing ground for a new idea that could protect fragile environments around the world: insurance. The reef, off the coast of Cancún, is the first to be protected under an insurance scheme by which the premiums will be paid by local hotels and government, and money to pay for the repair of the reef will be released if a storm strikes.

Don’t Sleep On Chile as an Emerging Market Play

When it comes to Latin America investing destinations, Chile often goes overlooked relative to Brazil and Mexico, the region’s two largest economies, but that should not take away from opportunity with the iShares MSCI Chile Capped ETF (NYSEArca:ECH). Up nearly 22% year-to-date, ECH is one of this year’s best-performing emerging markets single-country ETFs. This year, ECH is easily outperforming its Brazil, Colombia and Peru counterparts as Chilean stocks work their way toward record highs.

Brazil Government Assures Graft Probe Will Continue

Brazil’s justice minister and the top prosecutor both insisted Wednesday that the corruption probe they’ve led against their country’s top politicians will continue in full force, even after ensnaring President Michel Temer. Justice Minister Torquato Jardim says the investigation, dubbed Operation Car Wash, is a win for Brazilians.

EU, Brazil Propose Farm Subsidies Overhaul to Help Developing Countries

The two agriculture powers submitted the proposal, which would exempt the least developed countries from subsidy limits, in the run-up to a WTO meeting in Buenos Aires in December. The EU and Brazil are two of the world’s biggest producers of agricultural products.

Scaling Up Financing for Smallholder Farmers

Last year, the 11 social lenders, including Root Capital, Alterfin and responsAbility, collectively deployed $682 million, up 9% from the year earlier, to 765 agribusinesses in Latin America, sub-Saharan Africa and Asia.

Strong Export Demand to Lift Asian Economies: ADB

Surging global demand for Asian exports and low oil prices will help China and the region’s developing economies grow faster than expected this year and next, the Asian Development Bank said. The region should now grow by 5.9 per cent this year and 5.8 per cent in 2018.

Weekly Impact Investment Market Update: July 14, 2017

Posted on by MBC Strategic

Impact & ESG

Impact Investing Market Worth 307 Billion USD by 2020

The impact investing market is expected to grow from an estimated value of $135 billion in 2015 to $307 billion by 2020, at a CAGR of 17.86% from 2015 to 2020. The global market is set to witness a significant growth due to increase in demand for impact capital, growing ecosystem support and impact readiness.

And the GSG Honors Go to… A Year of Growth in Impact Investing

At the Global Impact Investing Steering Group (GSG) Impact Investing Summit, Sir Ronald Cohen, British venture capitalist and chair of the GSG, predicted a 2020 tipping point. At that time, even legacy investors will have added “impact” to risk and reward as a core component of financial decision-making.

Ford Foundation’s Darren Walker Takes on Opponents of Impact Investing – Including His Own Trustees

Walker earlier this year carved out $1 billion (over 10 years) out of Ford’s $12 billion endowment for mission-related investments, or MRIs. At the GSG Impact Summit in Chicago, he shared some of the story of a journey he said ‘has been very challenging and uncomfortable for my trustees and my investment committee…who are very conservative.”

Christian Super Charts a Course for Institutional Impact Investing

Christian Super is not stopping with its 10% allocation to impact investments, which is already impressive for an institutional investor. To the more than AU$100 million out of its $1.3 billion portfolio, the Australian pension fund has committed another $50 million.

Impact Investment to Close the SDG Funding Gap

The United Nations Conference on Trade and Development (UNCTAD) says achieving the Sustainable Development Goals (SDGs) will take between US$5 to $7 trillion, with an investment gap in developing countries of about $2.5 trillion. Under the new Development Agenda, it is the actual governments that hold a significant share of the resources needed to achieve the SDGs. The World Bank estimated that between 50 and 80 percent of what’s required will come from domestic resources.

UBS Raises $325 Million for Bono-Backed Impact Investment Fund

The Rise Fund, which counts Irish rock star Bono among its co-founders, aims to achieve “measurable, positive social and environmental outcomes alongside competitive financial returns”, UBS said in a statement on Monday.

Blueprint for Women’s Funds

This is a guide for organizations and individuals actively seeking to create gender equitable social change. In particular, it equips women’s funds to design strategies that use systems of finance and investments as tools to create the social change they seek.

Opinion: Investment in Agriculture is at the Heart of Sustainable Development Success

The agricultural sector alone accounts for 70 percent of water use. It often becomes a casualty of climate change, but is also emits significant greenhouse gases. It employs millions of women — who, if given access to the same resources as men, could feed an extra 150 million people in the world. Innovations in agriculture can help us make great strides on many goals.

From the Sidelines to Center Court – ESG and the Value Play

As the global industry increasingly becomes aware of how ESG integration affects the valuation of organizations, there becomes an increased need for a strategist to help maximize the valuation of a company. Specifically, an organization can look to see how ESG integration affects other particular issues like gender parity or climate change. The job of an ESG integration strategist evolves to help determine how other concepts can be incorporated as a positive practice in combination with ESG integration.

 

US & Europe

US Giving $638m Aid to Yemen, Somalia, Nigeria, South Sudan

The United States announced more than $630 million in aid for Yemen, Somalia, South Sudan and Nigeria, where conflict has helped to cause what the United Nations calls the world’s largest humanitarian crisis in more than 70 years.

 

Developing Economies

Executive Summary – Innovations in Financing Structures for Impact Enterprises: Spotlight on Latin America

Commissioned by the Multilateral Investment Fund with support from the Rockefeller Foundation, this summary of Transform Finance’s upcoming report provides an overview of the specific problems with traditional financing structures, the innovations happening now in investment funds and deal structures to alleviate the capital gap, and recommendations for how fund managers, investors, and entrepreneurs can engage with these alternatives to increase their impact.

Views from the Field: Argentina

For investors who have endured nearly two decades of hardship in Argentina, new developments in one of Latin America’s largest economies point to better days ahead. This report explores economic and political shifts through statements from 3 high profile professionals in the nation.

Impact Investment Exchange: Building a Social Capital Market in Asia

In 2009, Durreen Shahnaz launched the Impact Investment Exchange, or IIX, with a vision of building a more inclusive financial system though impact investing. Since then, IIX has established the world’s first social stock exchange, Asia’s largest equity crowd-funding platform for impact investing, and, recently, the world’s first listed bond with a focus on both social and financial returns, the $8 million Women’s Livelihood Bond.

Weekly Impact Investment Market Update: June 30, 2017

Posted on by MBC Strategic

Impact Investing & ESG:

Data: The Next Frontier for Impact Investing

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.

Will Impact Investors Embrace Employee-Owned 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.

‘Future of Impact’ Requires Investment, Philanthropy – and Business as a Force for Good

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.

 

ESG

Institutional Investors More Likely to Invest in Companies with Business-Driven ESG Disclosures, According to New White Paper

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.

Want to Attract HNW Millennials? An ESG Strategy may be the Answer

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.

Can Good Corporate Citizenship be Measured?

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

Michael R. Bloomberg Announces $200 Million American Cities Initiative to Help U.S. Cities Innovate, Solve problems, and Work Together in New Ways

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.

 

Europe

Groupe BPCE Becomes the First Bank to Issue a Samurai Social Impact Bond

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.

Developing Economies

Africa

Tanzania Current Account Deficit Narrows 50% in Year to April

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.

Latin America

Brazil, China Open $20 Billion Fund for Infrastructure, Tech Projects

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.

Asia

China Launches Five “Green Finance” Pilot Zones

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.

Developing Economies

Goldman’s Currency Advice for Emerging Market Oil Pain

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.

 

Weekly Impact Investment Market Update: June 23, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Impact Investing

Grand Challenges for Impact Investing: SOCAP’s Good Capital Project Seeks to Streamline an Unruly Field

The kickoff event explored the six “Grand Challenges” for impact investing in six concurrent breakout sessions.

 

2017 Social Progress Index

The Index includes data from 128 countries on 50 social and environmental indicators which measure social progress by a country’s performance on Basic Human Needs, Foundations of Wellbeing, and Opportunity.

 

State of the Small & Growing Business Sector 2016

This annual ANDE report contains the data on capacity development and direct investments into SGBs, and explores trands and activities in ANDE’s six most established chapters: Brazil, Central America/Mexico, East Africa, India, South Africa, and West Africa.

 

Readying an ‘Impact IPO’ on the London Stock Exchange

The Impact Investment Trust, will be one of few emerging market impact investing opportunities available to individual small investors, and seeks to raise $150 million generating 8% returns.

 

Sustainability Minded Indexers Get More Choices

As sustainable investing has joined the mainstream, more actively and passively managed mutual funds have been launched.

 

A History of Impact Investing

In this article, Investopedia provides an overview of the 3500-year history of impact investing, from its origins in Jewish law to principles and regulations implemented today. READ MORE…

ESG

Helping Investors Understand the Importance of ESG

This interview with Suzanne Fallender and Irving Gomez from Intel Corporation explores how the company has brought together sustainability and investor relations, and why this is important.

United States and Europe

Stocks Buoyed by Tech Rebound; Dudley Remarks Lift Treasury Yields

The tech sector is up 1.7 percent, pushing world stock markets up.

Emerging Markets

Emerging Markets: What Has Changed

This article summarizes changes in emerging markets ratings, and notes significant events which will affect the investing climate.

Banking the Unbanked in Emerging Markets

While 93% of the US population has access to banking, an estimated 2 billion adults do not. To address this, fintech startups are offering both online and mobile solutions, such as Oymoney and dLocal.

Africa

Experts Suggest Steps to Nigeria’s Sustainable Growth

Nigeria must promote the role of the private sector and handle the budget to help the nation move out of a recession.

Asia

Asia Firms’ Confidence at Three Year-High on Brighter Global Outlook-Thomson Reuters/INSEAD

A reading of over 50 indicators from the Thomson Reuters/INSEAD Asian Business Index shows a positive six-month outlook.

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: July 7, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Impact Investing

Steering Impact Investing Toward a 2020 Tipping Point

On the heels of the G20 meeting in Hamburg will come a summit of the Impact 16 in Chicago. 16 countries, with the recent addition of Finland and Argentina, have formed national advisory boards to accelerate the practice of impact investing.

An Impact Investing Tent Big Enough for the Problems We are Trying to Solve

This article by the CEO of the GIIN explores the network’s goals and aspirations in the impact investing sphere.

ESG

World’s Largest Pension Fund Selects Three ESG Indices for $9 Billion Investments

Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, announced Monday that it will shift 3% of its passive domestic equity investments (roughly $8.8 billion) into ESG indices.?

Establishing A Global Standard With Water In ESG Integration

Water resource groups all share the urgency for understanding one important concept, sustainability. Over time and research, these groups have analyzed how critical it is for institutional investors to strengthen their understanding of water in ESG integration.?

Asia Pacific Investors Take the Lead on ESG Integration

Asia Pacific investors have leapt ahead of their global counterparts in integrating ESG strategies into their investment decisions, a new survey by BNP Paribas Securities Services has revealed. 84 percent of the 135 institutional asset owners and managers surveyed in Asia Pacific are currently integrating ESG factors into their investment decisions.

Shifting Perceptions: ESG, Credit Risk and Ratings

This report is the first in a three-part series by the Principles for Responsible Investment (PRI) on its initiative to enhance the systematic and transparent consideration of ESG issues in the assessment of the creditworthiness of borrowers in fixed income markets. Click the link to download a copy of the report from the PRI website.

United States & Europe

United States

Oil Snaps Rally; Stocks, Steady After Fed Minutes

Oil prices fell sharply on Wednesday after their longest rally in more than five years while stocks ended higher after minutes from the U.S. Federal Reserve’s last meeting showed contrasting opinions.

US Jobs Growth Faster than Expected

The economy added 222,000 jobs in June, the US Department of Labor said, and job creation in April and May was higher than previously estimated.

Europe

Ahead of G20 Summit: ‘My Country First’ Approach Threatens Achievement of Global Goals

Ahead of the G20 meeting in Hamburg, the newly published SDG Index and Dashboards Report 2017 illustrates that world leaders need to strengthen their joint efforts to realize the global goals. Not only does a rising trend of nationalism and protectionism impede the implementation of the goals, but as the report shows, industrialized countries are not serving as role models.

Developing Economies

Implementation and Effects of the G20 Financial Regulatory Reforms

This report acts as a status update for progress on the G20’s program of reforms implemented to increase the resilience of the global financial system while preserving its open and integrated structure.

Africa

Why These Investors are Focusing on Impact Investing Across Africa

In this episode of the MoneyMakers Bruce Whitfield speaks to Brendan Mullen, Managing Director of Secha Capital and Nombuso Nkambule, Co-founder to discuss how it is identifying long-term opportunities for improvement and growth.

World Bank Approves $345 Million Loan for Tanzania Port Expansion

The port handled 13.8 million metric ton in 2016 – an increase from 10.4 million in 2011, reflecting an average growth of 9 percent per year, according to the bank. Tanzania wants to lift its capacity to 28 million metric tons a year by 2020.

Latin America

PERU: Annual Inflation Rate Decreases to Lowest Level in Almost Three Years

The annual consumer price inflation in Peru decreased in June to the lowest level in almost three years and is nearing the center of the current target range of 1% to 3% set by the local central bank.

Latin America is Going Through an Energy Transformation, and It Could Be a Huge Benefit to the US

This article details recent shifts in the Latin American energy market which could affect the demand for US energy.

Amid Crisis, Brazilian Impact Investors are Resilient and Optimistic (Podcast)

ImpactAlpha’s David Bank interviewed Fernando Scodro of Grupo Baoba, who next week is launching the Brazilian chapter of The ImPact, a network of wealthy families that have come together to make more impact investments, more effectively.