Weekly Impact Investment Market Update: February 12, 2019

Impact Investing & ESG

Investors are Starting to See the Positive Effect of ESG Investing
As the tide pulls some chief investment officers and asset owners toward improving corporate ESG practices, there is strong evidence that ESG investing is now rewarded, especially in the Eurozone, according to a recent Amundi SA study.

Impact Investing Isn’t Just for the Rich – We All Have a Part to Play
When I talk to people outside this field [impact investing], there’s still a widespread perception that philanthropy and impact investing is a preserve of the rich; that most people don’t have the luxury of being able to invest for impact.

Calls Grow to Change How ESG Risks are Categorized
Two European regulators, the European Securities Markets Authority and the European Commission, asked money managers in December to share their views on how to incorporate ESG factors into their processes in three European regulations.

Predictions for 2019: Impact Investing
There’s an opportunity this year to reshape what finance looks like – as long as that world is willing to ask itself some difficult questions, writes Daniel Madhavan, CEO of Impact Investment Group.

Emerging MSCI ESG Trends to Watch in 2019
Protest movements have elevated the profile of ESG investing to the point that financial advisors who dismiss its significance could miss out on attracting new clients as well as juicy returns for their existing clients’ portfolios.

ESG: A Trend That Pays Off in Performance?
More and more, individuals and communities are placing heightened awareness on being environmentally conscious, whether that is through Earth Day events or beach cleanup days. These activities not only have a positive impact on the environment but also socially — who doesn’t enjoy a clean, green environment?

What’s the Score with ESG Investing? You Have to Dig Deeper
Using ESG scores to measure investment worthiness of a company is a good start, but advisors have to go deeper to see the real picture.

Millennials: Save the World and Get Rich Doing So
ESG investing is one of the hottest trends on Wall and Bay Street, and no, it’s not just some fad that will die out like Bitcoin did last year. This may surprise you, but how environmentally or socially responsible a company acts could actually add intangible value that’ll ultimately be reflected in the stock price.

Surveying the Investment World Through an ESG Lens: A Snapshot of Key Topics from the U.S.
Environmental, social and governance (ESG) topics have never been more prominent in investors’ minds than they are today. But there’s considerable variation among investment managers about how ESG is considered or integrated.


Developing Economies

The Case for Emerging Markets: Likely Long-Term Out Performance
While the performance in any given year is uncertain, emerging markets appear poised for out performance over the next 5-10 years.

AfDB Report: Africa’s 2019 Economic Outlook
This year’s flagship report is themed: “Regional Integration for Africa’s Economic Prosperity.”

South Africa’s President Says Mining Key to Reviving Economy
South African President Cyril Ramaphosa says the country’s mining sector will be crucial to reversing sluggish economic growth and high unemployment.

Southeast Asia Bucks Trend of Sinking Global Foreign Investment
Southeast Asia is bucking the global trend of falling direct foreign investment, as the low-cost fast-growing region solidifies its position as an attractive location for multinationals.

Indonesia’s Economy Shows Resilience as GDP Beats Forecasts
Indonesia’s economy grew faster than economists expected last quarter, showing resilience in the face of a series of interest-rate hikes and weaker global demand.

Argentina’s Currency Gets Boost from Tight Monetary Policy
The ultra-tight monetary policy that Argentine authorities adopted amid last year’s currency crisis has yielded results and given a big boost to the peso, although economists see potential trouble on the horizon ahead of the October 2019 general election.

Brazil to Maintain Record Low Rates, Debate Turns to More Easing
Brazil’s central bank will keep its benchmark interest rate anchored at a record low later this week, and probably keep it there for the rest of this year, according to a Reuters poll of economists.