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It’s Another Great Day To Learn About Investing

What motivates you to invest your money? Perhaps you're looking to fund your retirement, secure a better future for your children, or maybe you have a dream to build a real estate portfolio to create passive income. What about investing your money to make an impact in your community?

Impact-based investing is the second most important factor for women investors when choosing their investment strategies. In fact, 61% of women between the ages of 30 and 40 decide where to invest based on the social or environmental impact of their choices.

In this newsletter we will cover what impact-based investing is, and what investment approaches are available to you!

What Is Impact-Based Investing?

The concept of impact-based investing involves investing your money in companies, organizations, and funds that aim to generate positive social and environmental impacts alongside financial returns.

This approach is also sometimes referred to as Socially Responsible Investing (SRI). SRI actively excludes investment in sectors considered harmful to the planet or society. The mission of such investments is often closely tied to your personal ethics and investment philosophy.

In recent years you may have come across the term ESG, which stands for Environmental, Social, and Corporate Governance. ESG refers to a set of standards that companies adopt to address the impact of their practices on the environment, employees, and overall corporate footprint. When seeking a company to invest in, whether through stocks or as an angel investor, researching their ESG standards can help ensure that your investments align with your personal values.

For example, the R.I.S.E. The Movement community was introduced to an impact type of real estate syndication that historically achieved high Return on Investment (ROI). In past projects, some investors received close to a 3x return on capital, passive income, and tax advantages.

This investment opportunity is impactful because it reserves half of the housing units for low-income individuals working in public service, including teachers and military families. This is a great example of how you can invest your money to achieve impressive returns while making a positive impact in a community!

Choosing Your Investment Approach

Once you've determined your investment philosophy and are ready to begin, it's time to research which investment approach best aligns with your current situation, including how much money and time you're willing to commit.

Here are a few impact-based investment options to consider:

Social Impact Bonds: These are financial instruments that pay a return based on the achievement of social outcomes.

Venture Philanthropy: High-engagement, often high-risk, investing in early-stage enterprises with a strong social mission.

Environmental, Social, and Governance (ESG) Investing: Investment strategy that considers a company’s impact on environmental, social, and governance issues in addition to financial performance. While ESG investing might not have explicit impact goals, it does aim to invest in more responsible and sustainable companies.

Community Investment: Financial investments that are focused on generating social or environmental good in a specific community. This often involves investing in local businesses, community programs, or infrastructure projects.

Sustainable Agriculture: Investments in farming and food production that are sustainable and beneficial for the environment.

Renewable Energy: Investing in renewable energy companies or projects, thereby facilitating the transition from fossil fuels to sustainable energy sources.

Affordable Housing: Investments in housing projects that aim to provide affordable, quality housing for disadvantaged populations.

SUPERWOMAN SPOTLIGHT

The founder and CEO of Acumen, Jacqueline Novogratz has been a pioneering force in impact investing for decades. Acumen is a non-profit global venture fund that uses entrepreneurial approaches to solve the problems of poverty. Her work has influenced the way social entrepreneurship is approached and has provided a model for many other impact investing initiatives.

Novogratz’s work first started in 1986 when she left Wall Street to co-found the first ever microfinance institution in Rwanda. Today, she is seen as a pioneer of impact investing, with few people having heard of the concept when she started Acumen in 2001. Today, her company has invested over $135 million to build 136 social enterprises all across the world, which work to provide affordable health care, education, energy, and clean water to over 308 million people. You can read more about her experiences in her memoir The Blue Sweater: Bridging the Gap between Rich and Poor.

FINANCE IN THE NEWS

This Week At a Glance

• The US Commerce Secretary is visiting China in an attempt to boost economic business ties between the US and China amidst a worsening relationship between the world's two largest economies.
  

• Mortgage rates have reached a 22 year high, with the average 30-year mortgage rate jumping to 7.23%. The last time rates were this high were in June 2001. As a result, home buying applications are the lowest they have been since 1995.
  

• According to IAREM, Norway has ranked as the world’s best economic management under its current government system, which is a mix of capitalism and socialism. In promising news, the US jumped from 41st to 18th place in 2023.
  

• Consumer spending was high this summer, but it's expected to cool in the coming months as the Fed continues to work against rising inflation. Although stocks hit a major slump in August, the overall trend for 2023 is that the stock market has been trending high thanks to semiconductor chip manufacturer Nvidia.

America’s Economy Is Doing Good, So Why Does It Feel So Bad?

By all leading metrics, America’s economy is doing well. Unemployment is at the lowest it's been since the 1960s, the economy is growing despite talks of a looming recession, and inflation is down 3.2%.

However, in a recent survey by Quinnipiac University, 71% of Americans reported that they view the economy as “not so good” or “poor”. A recent CNN poll had similar results, with 50% of Americans reporting that the US economic conditions are poor and getting worse.

Next Week’s Sneak Peek:

Next week, we will break down the first steps you can take to begin impact-based investing, and explore how your investments can pave the way for a brighter future for the next generation of women.

Glossary:

ESG: ESG refers to the consideration of Environmental, Social, and Governance factors when making investment decisions, aiming to achieve both financial return and positive societal impact.

Socially Responsible Investing (SRI): SRI is an investment strategy that seeks to generate financial returns while excluding companies or industries with negative social or environmental effects.

Impact Investing: Impact investing involves making investments in companies or funds with the explicit goal of generating measurable social and environmental impact alongside a financial return.

@risethemovement

www.risethemovement.com

Regardless of whether you are scared to take the first step or you are ready to dive right in, there's an Investment strategy perfectly suited for you.

At R.I.S.E we are committed to guiding and supporting women investors at every stage of their investment journey because we believe the key to success lies in education and informed decision-making

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