The asset allocation of a portfolio helps drive its long-term performance results. Rebalancing is also critical and is especially important in today’s market given the extended bull market in stocks. A traditional 60/40 (equities/fixed income, respectively) portfolio would likely be 70/30 without rebalancing after a prolonged equity bull market. The outsized equity allocation could then be detrimental to returns should the next recession strike. In light of this coupled with current low yields on traditional core fixed income securities, many investors and their advisory teams have been ramping-up research on liquid alternative investments and the role they can play in portfolio diversification.
CCM recently attended the High Water Women’s Investing for Impact Symposium in New York City. High Water Women is a nonprofit organization, founded by a group of women from the investment industry, that supports volunteerism and philanthropic giving. The organization now includes 3,500 members from across the financial services world.
“More than half of Millennial investors see the social responsibility of their investments as an important selection criteria, compared with less than 30 percent of WWII-era investors and 42 percent of Gen X investors.” 1
Millennials are often cited in investment-related headlines, especially as the generation accumulates more and more wealth. Their perceived lack of interest in traditional financial goals like home ownership or car ownership and inclination to spend money on experiences, such as food and travel, appear to be disrupting industries. Even their career paths and desired job perks tend to illustrate a shift in priorities.Read More
“The success of the microfinance model inspired us to replicate a similar approach
in healthcare and education, which are as critical to rural India as credit.”
- Srikrishna Ramamoorthy of Unitus Ventures
Image Source: Indiatimes.com
Microfinance typically aims to provide low-income or impoverished communities with access to capital. They are often in the form of small business loans with the goal of helping communities and businesses become self-sufficient. A recent Forbes article notes that the success of microfinance projects in India has resulted in larger-scale impact investments, including the funding of impact/ESG-oriented tech startups.
CCM’s Chief Impact Strategist, David Sand, has more than 35 years of investment management experience and is a trailblazer in the socially responsible/impact investing arena. Recently, a member of our team sat down with David and asked him a few questions about his career and experience.
Q: What started your career in impact/ESG investing? Was there any specific catalyst(s) that led you to become a pioneer in the development of market-rate, fixed income impact investments?Read More
“Wealthy investors are motivated by sustainable values, yet many don’t apply them to investment decisions.”1
It has become more common for affluent investors to incorporate sustainability into their lifestyles. These new behaviors include recycling and using natural household cleaners, making large scale environmentally friendly purchases such as solar panels and electric cars, and even choosing impactful careers. These investors may be more likely to purchase a product from a company with a reputation as a leader in environmental sustainability, versus a slightly-cheaper version of the product from a manufacturer with no known sustainability focus.Read More
According to the United Nations Principles for Responsible Investment (UNPRI) and Sustainable Development Goal #5, providing women and girls with equal access to education, health care, decent work, and representation in political and economic decision-making processes will fuel sustainable economies and benefit societies and humanity at large.Read More
Across state and municipal pension plans, state treasurers and plan fiduciaries are seeking to learn more about impact/ESG investments. Similar to our recent blog noting the adoption of impact/ESG strategies in defined contribution/401(k) plans, these municipalities also look to introduce new or increase their existing impact/ESG allocations.Read More
Adoption of Sustainable Investing (SI) strategies, or those that integrate Environmental, Social and Governance (ESG) goals, has seen considerable growth in defined contribution (DC) plans. This growth has been primarily fueled by an increased appetite from participants, interest from plan sponsors to align DC menus with their corporate values, and a growing set of investment capabilities that fit the performance needs and values of investors.1Read More
Since 2014, the Vatican has held three conferences on impact investing (2014, 2016, 2018), and the Catholic Church has become a major player in the impact/ESG space. This biennial series of Vatican Impact Investing Conferences is a “vital, long-term global platform around Pope Francis's vision of 'putting the economy at the services of peoples'”.1 At these events, impact investing experts and Catholic leaders from around the world convene to share and evaluate finance models and investible vehicles to address systemic challenges of great importance to both the Catholic Church and the global community. Current challenges include Climate Change, Health, Migrants and Refugees, and Youth Unemployment.2Read More