Weekly Impact Investment Market Update: December 14, 2018

Impact Investing & ESG

How Socially Responsible Stocks Could Protect Investors in a Bear Market
So-called ESG equity strategies—buying the stocks of companies that perform well on environmental, social-responsibility and governance metrics—can help you align your portfolio with your ethical values. But can they also help you ride out a down market, or even a bear market, with fewer losses? It seems 2019 may be the year that investors find out.

‘Investing for Good’ Meets the Law
By law, a trustee must abide by fiduciary duties of loyalty and prudence, and therefore act for the “exclusive” benefit of the beneficiaries, considering “solely” their interests, without regard for collateral benefits, such as advancing social or environmental causes.

Creating an On-Ramp for Impact Investors: An Interview with the GIIN’s Amit Bouri
Started in 2009, the Global Impact Investing Network (GIIN) conducts research on impact investment, runs training programs for investors and fund managers, organizes industry events and builds tools and resources for impact measurement.

IPE Conference: Quantitative vs Qualitative in Impact Investing
Being able to convey the social or environmental impacts of investments in numbers is not the be-all and end-all of impact investing, asset owners told IPE’s annual conference last week.

How Impact Investing Could Move from the Margins to Mainstream
The amount of money that goes towards impact investing globally is far short of what is needed to meet the United Nations’ Sustainable Development Goals. Charitable institutions, donors, foundations and NGOs have long been the chief champions of impact investing, and the best bet is for the private sector to address the funding gap, experts say.

Impact Investing Could Accelerate the Fight Against Cancer
A new generation of philanthropists, whose wealth was created via entrepreneurship in technology-driven fields, has the unique opportunity to make a real difference in speeding the pace of progress in the fight against cancer.

10 Key Alpha Drivers in Impact Investing
Yes, impact investing does boost financial returns, but does more, according to the latest study confirming this finding, which also zeroed in on 10 “unique drivers” that “can enhance or add financial value” for investors.


Developing Economies

Outlook 2019: Emerging Markets are Better than the U.S. if Dollar Cooperates
It’s already happening. Don’t let the recent sell-off scare you: The smart money is moving out of the U.S. and going abroad. The risk-off cash position is due to the Fed. The rest is a symptom of a red-hot U.S. stock market that got too expensive for its own good, and right at a time when interest rates are rising and tight labor markets have peaked.

Deals, Dollars and Development on the African Continent
The first-ever Africa Investment Forum was a resounding success with some fascinating math: 49 projects worth $38.7 billion over three days, all for the continent.

A Southeast Asian Currency is Set to Top 2018’s Emerging-Market List
Having a strong buffer in times of stress does pay off. Just look at the baht. The Thai currency has declined 0.3 percent to 32.672 against the dollar this year as of 1:11 p.m. in Bangkok, the best performance among 22 major developing-economy currencies tracked by Bloomberg.

From Politics to Policies: A Guide to Latin America Markets in 2019
Latin America’s two largest markets will start 2019 in the hands of new populist presidents who are pledging to overturn decades of consensus policies in an effort to revitalize growth and boost investor confidence.

Latin American Markets Look Promising in 2019 and Beyond
2019 is likely to be a year of volatility in Latin America, but markets look promising for long-term investors. Given banks’ and other financial institutions’ significant exposure to Latin America, analysts and investors will have to be very attentive to external and domestic factors that will influence the performance of Latin American bonds, equities and foreign exchange markets.

Brazil’s 2019 Earnings Growth May Top Emerging-Market Peers
Brazil’s Ibovespa index has advanced over 15 percent so far this year, one of the best performers among main global benchmarks, as corporate results shined amid record low interest rates and subdued inflation. In the third quarter, earnings before interest, tax, depreciation and amortization grew 27 percent for Ibovespa listed companies, according to Banco Santander Brasil SA.