At Aneuvia, we believe in democratizing financial wellness and investment advice for the betterment of companies, communities and individuals. Here we share our insights, point of view and advice on global impact investing, corporate diversity and inclusion, new financial market trends, impact investment funds and more.
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It is a common misconception that in economic downturns, investor interest in sustainable investing stifles. It is often viewed that when the market declines, investors must resort to traditional, defensive strategies. In light of global environmental and social awareness movements - namely, climate change, gender inequality, financial exclusion, consumers and investors are prioritizing sustainability:
- Morningstar reports that in the first three months of 2020, 70% of sustainable equity funds showed returns in the top halves of their broad-based peer group.
- Of those, 44% scored within the top quartile. By early March, ESG-aware companies outperformed other stocks by up to 5.7%, per HSBC.
Economic, social and corporate governance are the new currency.
ESG investing involves researching and factoring in environmental, social, and governance issues, in addition to the usual financials, when evaluating potential stocks.
Aneuvia works with clients to reassess their ESG footprint and operations to increase value among investors. In our latest whitepaper "The Positive Impact of Active Ownership: Finance for Good", we’re seeing many individuals, especially millennials and Generation X, are embracing a socially and environmentally responsible lifestyle.
Impact investors have started to more intentionally bring a sustainability and diversity lens to investing. Now is the time to build off this momentum, and for businesses to ask questions like, “Are we building a first-class diverse organization? Are we operating in a financially-sound and environmentally-friendly manner?” At Aneuvia, we are committed to driving progress on diversity and sustainability as a ‘catalyst’ through our partnerships with individuals and organizations.
Learn more about Aneuvia’s sustainable investing solutions.
Crisis reveals character. It often teaches us more about ourselves than we may realize during times of norm. As we face the unprecedented challenges of COVID-19, we see the true underlying motivations of individuals, nations and businesses. One particular rising motivation during this time of crisis offers a silver living: purpose meeting profit.
The rise of impact investments
According to Edelman’s latest Trust Barometer, the most comprehensive study of trust in the world, consumers expect brands to take personal accountability and action for COVID-19 recovery.
- 90% of consumers want companies and brands to do everything they can to protect the well-being and financial security of their employees and suppliers, even if it means suffering big financial losses during the pandemic.
- The penalty for companies that put profit ahead of people is severe, with 71% of people saying that this will erode their trust in a business forever.
Where the government has left gaps, consumers and activist investors expect companies to fill. Impact investing is the notion that profit and purpose don’t need to be at odds. Instead, it refers to an investment strategy that not only generates financial returns but also creates a positive impact. The cornerstones of impact investing is lending to social or environmental causes, and underserved communities -- whether geographic or socioeconomic.
These investors who care about creating a positive impact are showing their financial support to companies directly addressing the coronavirus pandemic to ensure they have the funds to keep going. Here are some examples of recent commitments announced:
- BlackRock commits $50M to help meet immediate needs of those most affected
- IFC increased its COVID-19 related financing availability to $8B
- The Rockefeller Foundation commits $20M in assistance to support vulnerable communities
Navigating a new (ab)normal
COVID-19 is presenting the world with unprecedented challenges in modern times. We believe impact investing will continue to be a priority as the world’s markets begin to recover from the impact.
Learn more about Aneuvia’s impact investing solutions.