Prior to the Brexit vote on June 23, financial markets were relatively strong. The S&P 500 index was trading just under its all-time high and the British pound was at the highest level of the year.
There were two distinct periods during the quarter divided by sentiment and performance. The start of the year through February 11 was a “risk-off” period of negative sentiment and sharp declines across asset classes and countries.
Many acronyms and terms are associated with impact investing, including socially responsible investing (SRI), mission related investing (MRI), and environmental, social and governance (ESG).
Bond markets globally were off to a slow start at the beginning of the quarter, but began to drive higher as the Brexit vote approached and eventually jumped on the result as investors sought out safe-haven assets.
The 'leave' campaign, a victory for the pro-Brexit voters, was quite a surprise to markets and the world. The United Kingdom, based on a referendum of all eligible citizens, voted to leave the European Union (EU) and became the first country to do so.
UK’s vote to leave the EU has escorted in what could be a long period of uncertainty and volatility in the market. There is also skepticism about the recent, liquidity-driven bounce in risky assets.
Looking back over the first half of 2016, the FTSE 100 index increased by 6.7 percent when dividend payments are taken into account. However, this positive performance disguises the substantial equity market volatility seen in February, and again following the Brexit decision in June.
Impact investing has gone mainstream. The Employee Retirement Income Security Act of 1974 (ERISA), which regulates single-employer and multi-employer private pension plans, now officially agrees.
A growing trend among healthcare organizations is to evaluate and/or invest in private equity funds or directly in companies focusing on opportunities in the healthcare industry.
Corporate America is doing it, so why shouldn’t individual and institutional investors do it too? In this case, it refers to creating a so-called “fortress balance sheet” that provides protection and downside risk management by holding excess cash and cash alternatives to retain liquidity.
