This Week in ESG and Impact Investing

The COVID crisis reveals what’s actually important: family, food and community . It also shows what’s not important: material items and money worship . Globalization, too, a specific form of money worship, proved unable to support the domestic production of basic but critical supplies, like masks, in a time of crisis. Another thing revealed by this crisis is the true cost of racism. It shows how racism supports mediocrity.  The crisis reveals the moral and spiritual bankruptcy embedded in some of the “religious” claims by white racists in the US. These appear to be materialistic and greed-based misinterpretations. This is a self-centered version of “faith” that somehow justifies not wearing a mask in the middle of a pandemic. In addition to being irrational, any logical interpretation of this behavior reveals the selfishness driving this behavior. The common thread is veneration of white privilege, including the right to impose a deadly pandemic on Black people, simply because some wh

On October 6, 2020, Jerome H. Powell, Chair of the Board of Governors of the Federal Reserve System reviewed America’s economic status amidst the COVID-19 pandemic. Mr. Powell began his analysis at the beginning of 2020, before the pandemic hit. He then touched on the recession and the nascent recovery that must ensue. Mr. Powell closed with a look at what lies ahead on the road to normalcy. The speech was full of numbers and statistics that, to the casual observer wouldn’t fully explain what this means for the country. But, I can say with a fair amount of certainty that Chair Powell is wary of what's to come for our nation, which, before the COVID-19 pandemic was experiencing new highs in job creation and the stock market. Nevertheless, Chair Powell remains optimistic that the country will fully recover and return to what it once was. In terms of the pre-covid economy, Chair Powell stated that:  “The U.S. economy was in its 128th month of expansion—the longest in our recorded hist

  JPMorgan Chase announced a $30 billion “commitment” to address U.S. wealth inequality in Black and Latino communities. The pledge consists of actions, over five years, designed to increase the number of loans, investments, donations and grants the bank makes. The focus of the effort is housing, where the bank says it will lend an additional $14 billion dollars, finance the construction of 100,000 affordable rental units and issue $12 billion in mortgages. These efforts are meant to be supplemental, that is, the bank says these are loans and investments it would not otherwise make. Of course, problems with racial inequality in the U.S. have been magnified after the May 25 death of George Floyd, instigated by former members of the Minneapolis, MN police department. The incident sparked weeks of protests across the globe. In addition, the COVID pandemic exposed gaps in health care access. The Black community has experienced far higher Covid-19 mortality than in the overall population. B

As a new virtual knowledge-exchange, Prox is dedicated to "connecting wisdom with those who seek it." The platform allows people to search a community of subject matter experts and book time with them instantly. In a September, 2020 TechCrunch article, Prox CEO Michael Mathieu stated that the goal of the platform "is to create an entire suite of 'back office' tools for experts and influencers...the company is starting out by offering an easy way to host one-on-one video sessions with knowledge seekers. People who are influencers on social media and on YouTube, they don't control that customer," Mathieu said. "It's a YouTube customer, so if you're going to monetize, it's through a slice of YouTube ad revenue." The TechCrunch article goes on to state that "Prox is designed to help..experts make money more directly from anyone who wants to connect with them, and to understand that audience. (CEO) Mathieu suggested that the

Bits & Pretzels (B&P) is the German equivalent of the South by Southwest  (SXSW) startup event. B&P is Europe’s biggest startup/founders festival. The event will be held from September 29 to October 2, 2020. Speakers include: Eric Schmidt, Former CEO Google, Co-founder Schmidt Futures Dirk Nowitzki, Basketball superstar Arianna Huffington, Founder & CEO, Thrive Global  Former speakers include Barack Obama, Richard Branson, Jessica Alba and many other world leaders in the global startup ecosystem. Bits invented Table Captain Networking for startups to connect face-to-face with experts in small networking sessions. Each session is 40 minutes long for up to 6 attendees and are perfectly timed and sized for startups to ask questions. We will host a Networking session at the event on September 30th. 

September 24, 2020 In a discussion led by William Michael Cunningham, Mr. Tarrell Gamble, Ms. Wendy Garcia, and Dr. Ruchi Dana spoke about their experience with diversity within the investment management business sector.  Starting with women in the workforce, Dr. Dana noted research that shows companies with more women are also more capital efficient.  Dr. Dana also noted that gender diversity is an important starting point when considering balanced executive boards. She stated that female consumers make up $20 trillion of consumer spending. This is larger than the GDP of both India and China combined. Therefore, Dr. Dana notes, it is important to have women on corporate boards who understand this perspective. She finished with noting that "In a society where firms are mainly white male owned, there exist many systemic barriers. When looking to hire investment consultants, firms must also be conscious of the language they use to refer to their employees.&qu

On December 26, 2016, Creative Investment Research noted that: "Under any conceivable scenario, the current situation is very bad, and I mean toxic, for democratic institutions in general and for people of color specifically. Bottom line: our Fully Adjusted Return Forecast** indicates that, over time, things will get much, much worse....." (See: https://www.linkedin.com/pulse/trumpism-william-michael-cunningham-am-mba/ ) Now, after months of economic uncertainty and volatility, we find ourselves at a crossroads. Reuters Events Investment Summit With markets in decline and economies around the world pointed towards recession, Reuters Events' Investment Summit (Dec. 3-4) unites financial institutions and investors to tackle the future of investment at this unprecedented moment. Combining onstage inspiration with intimate peer-to-peer networking, the two-day flagship will cover four key themes: Market Drivers and Outlook: Learn how macroeconomics, geopolitics,

What is Investment Research And Why Is It Broken? Investment research studies of the performance of stocks, bonds, metals, mutual funds, and other assets. This is done, most often, to influence investment decision making. It seeks to "produce a guide to what investments to make.” With the capture of regulatory authorities (who are, supposedly, looking out of the public interest) by financial institutions, the number of investment "assets" has increased. There are now more than 5,000,000 different types of investment vehicles. Many have little actual value. A new investment class with actual value may be cryptocurrencies. A cryptocurrency is a  digital program or asset designed to work like currency .  Bitcoin  is a  cryptocurrency. What is Investment Research? As we note in our online class , investing is "the process of spending money in order to increase the original dollar amount." Investment research provides timely information that, combined

For many majority-owned institutions, the concepts of "monetary gain" and "social good" have long been regarded as mutually exclusive. We see this most directly in the recent attempt by the Labor Department to shut down Environmental, Social and Governance (ESG) investing : “Private employer-sponsored retirement plans are not vehicles for furthering social goals or policy objectives that are not in the financial interest of the plan,” said Secretary of Labor Eugene Scalia. But this ignores the facts: investing has always been used to further social goals. Claims that it is difficult to determine the worth of "ESG" or "Social Investments" have not prevented majority-owned institutions from using these factors while making decidedly "anti-social" investments. For example, on July 24, 2020, major "investment" bank Goldman Sachs was fined $3.9 billion by the country of Malaysia to settle criminal charges that the bank conducte

The Emerging Managers Summit , to be held virtually on September 24th, highlights the benefits and opportunities for institutional and private wealth investors to invest in new, small, diverse, women owned, emerging, and boutique fund managers. The program seeks bring smaller diverse managers into the limelight as they have historically outperformed their larger peers. This event will take place entirely on Opal Group’s custom Virtual Event Platform , giving an opportunity for delegates from around the world to connect online. Key decision makers from family offices, endowments, foundations, and pension funds will be able to virtually interact with emerging managers, as well as share best practice ideas with peers. Hear from our panel of experts to stay up to date on the ever-changing emerging manager market.  https://opalgroup.net/conference/emerging-managers-summit-virtual-2020/

On June 23, 2020, "the U.S. Department of Labor proposed a rule that would 'update and clarify' the Department of Labor's investment duties regulation. According to the news release issued announcing this proposed rule, "Private employer-sponsored retirement plans are not vehicles for furthering social goals or policy objectives that are not in the financial interest of the plan," said Secretary of Labor Eugene Scalia. "Rather, ERISA plans should be managed with unwavering focus on a single, very important social goal: providing for the retirement security of American workers." Our 135 page response, filed on July 26, 2020, concerned the social impact of the proposed rule, and stated that: "With this proposal, we believe the Administration and, by extension, the Secretary, have violated their oath to protect the public and should resign or be removed. Of course, we understand how committed these specific individuals are to self-promot

Black-Owned Broadway Financial Corporation and “Black-Led” CFBanc Corporation announced a merger of equals that may lead to the creation of the largest Black-led (but not Black-owned) bank in the U.S. The resulting institution will have more than $1 billion in combined assets and approximately $850 million in total depository institution assets (as of June 30, 2020). (Also see: BLACK BANKS MERGE TO CREATE NATION’S FIRST BLACK-LED BANK WITH OVER $1 BILLION IN ASSETS.  https://www.blackenterprise.com/black-banks-merge-to-create-nations-first-black-led-bank-with-over-1-billion-in-assets/ Black-Owned Banks in LA, DC Announce Merger. https://mynewsla.com/business/2020/08/27/two-black-banks-merge/ Merger of two Black-led banks aims to help break a painful cycle https://www.latimes.com/business/story/2020-08-27/black-banks-broadway-federal-bank-city-first-merger ) Broadway is one of the best Black banking institutions in the US, based on their longevity and positive impact on Bl

Link to interview: https://drive.google.com/file/d/11yR9RGTdY5ccp5PyEhbjkRqgiKQJm34-/view?usp=sharing

According to a new report issued by Creative Investment Research, as of August 3, 2020, $7.854 billion in corporate pledges have been made to facilitate efforts that support racial justice. Just six companies account for 70% of that total. For the summary report, see: https://www.linkedin.com/pulse/six-companies-account-70-corporate-black-lives-matter/   Also see: https://youtu.be/t7aqn7oGGj0 via @YouTube  Creative Investment has launched a crowdfunding campaign to pay for the development of a BLM Corporate tracker:  https://www.gofundme.com/f/tracking-corporate-donations-to-blm?rcid=r01-159828617213-f92f83fc925f4b9a&pc=tw_co_campmgmt_w&utm_medium=social&utm_source=twitter&utm_campaign=p_lico+share-sheet To donate directly, please contribute at paypal.me/cirm  

During quarantine, CRUZN COZY has started a kickstarter campaign in high hopes of getting business adjusted to the new norm for all of us worldwide. https://www.kickstarter.com/projects/cruzncozy/the-next-big-thing-0 www.cruzncozy.com Here at CRUZN COZY, we understand that everybody has been affected in some way by this quarantine period. Whether that be emotionally, physically, mentally, or socially. It's been hard for all us, but if you can find in your heart to give just a small token, that will be greatly appreciated. Any amount helps. No amount is too small or too big. A percentage of generated sales from merchandise or the campaign will be given to organizations who help people that are in need of shelter, food and clothes during quarantine. Any backer who gives $100 dollars or more will receive free merchandise from our new collection, and backers who give $200 or more will receive 2 VIP tickets to the SBFW New York Fashion Show Tour 2021.  Thank you so much for your time. O

We are pleased to be the Media Partner for Reuters' Free "Delivering Net Zero Virtual Week" (4th – 5th August 2020) https://www.prlog.org/12832098-media-partner-for-reuters-free-delivering-net-zero-virtual-week-4th-5th-august-2020.html

With the attention placed on financing small (especially Black) businesses during the current crisis, and with the problems identified in government-run business financing programs like the PPP, (see * below) we are presenting updated information on crowdfunding. We draw on what we have learned since we issued, in 2012, our book on the subject. (This was, as far as we know, the first one published.) Crowdfunding works by allowing an entrepreneur with an idea for a company or product to post the details of the idea or product on a web site such as Kickstarter or Indiegogo. The crowdfunding provisions of the JOBS Act allow start-up and other companies to sell up to $1 million in equity, or ownership shares, in their business. Our company has been facilitating this type of business financing since July 1998, and. most recently, in June of 2020 . We still believe this is a viable option for minority firms, as we stated in 2012. How to be successful at crowdfunding Crowdfunding

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An estimated  $7 billion in corporate  pledges have been made to facilitate efforts that support racial justice, and help activities  that seek immediate solutions  to the crisis affecting Black people. We are very familiar with these types of promises, having launched the first website focusing on financial support for minority communities in 1995 and a new website to monitor such corporate pledges. Yet it appears that only $188 million of that $7 billion is money someone can reasonably expect to get their hands on. Further, in certain sections of the Black community, there is concern about the effectiveness of the traditional organizations identified as recipients of the pledges. And there appears to be less  concern with newer, trending  organizations. Our recent survey of  customers banking at black-owned banks  suggests most consumers who do not use Black banks are concerned about their financial stability, and have not been able to leverage financial resources from th

List of ways/tips to support and help black-owned small businesses: https://www.finimpact.com/blacklivesmatter-support-black-owned-small-businesses/

We are conducting a customer satisfaction survey on Black Banks To participate, see:  https://www.surveymonkey.com/r/YQZXZY7 Questions include: 1. How frequently do you utilize Black-owned Banks? 2. What is your overall satisfaction level when dealing with Black-owned banks? (5 starts - highest). 3. Have you had success in getting  loans, etc. from Black-owned Banks? 4. Are/were you worried about the financial stability of Black-owned banks? 5 .   Do you believe that Black-owned banks prioritize your needs? For a list of Black banks, see: https://www.minoritybank.com/research/blackbanks.html See: The country’s last black-owned banks are in a fight for their survival. https://www.washingtonpost.com/news/wonk/wp/2015/02/13/the-countrys-last-black-owned-banks-are-in-a-fight-for-their-survival/ 2011 - Crisis - The Current State of #BlackBanks  https://www.prlog.org/11541435-crisis-the-current-state-of-black-banking.html  2016 - Creative Investment released an analysis

An effort encouraging investors to buy stock in Black-run banks could create new challenges for the leaders of those companies. The Buying Black movement, which took root last week, led to sharp increases in the shares of companies such as Broadway Financial in Los Angeles, Carver Bancorp in New York and M&F Bancorp in Durham, N.C. An influx of new investors could increase pressure to improve shareholder returns, while any strategic effort designed to generate higher profits could also draw a backlash. At the same time, markets are fickle — most shares in Black-run banks have fallen significantly in recent days as some existing shareholders cashed out. Indeed, Broadway's biggest investor — who had been pushing for the company's sale — abruptly sold all of its stock after the value of its holdings soared. Leaders of Black-run banks contend that what they need more than capital is more partnerships with bigger banks to extend their reach to underserved custo

American Corporate Responses to Black Lives Matter now total $4.628 billion. See our crowdfunding campaign...Help make it happen for American Corporate Responses to Black Lives Matter on @indiegogo https://lnkd.in/gmWFprW

On June 15, 2020, the SBA announced they were restarting the EIDL program with an additional $60 billion in funding.  Independent contractors, freelancers, and gig workers can receive a $1,000 grant which you do not have to repay.  Small businesses can apply for a grant of up to $1,000 per employee. Maximum $10,000.  Loans from $150,000 to $2,000,000 may also be available. Apply at covid19relief.sba.gov See the video at right for more information.

Five months ago, our nation was made host to a virulent, deadly visitor, brought to this continent surreptitiously. A new virus, uncovered in China, unsparing in occurrence. Now we are engaged in a great experiment, testing whether any nation with fearsome, monstrous divisions based on race and wealth, can survive in the face of such a disease. We have come to give our testimony while we still can, in an increasingly authoritarian environment. We do so to support the survival of all who participate in this society. We are writing not as people of wealth and privilege but as ordinary people, like the medical and public safety workers who gave their lives that this nation might live. As citizens of the world, we have an obligation to speak out. As citizens of the US, we have the right to do so. We offer an independent viewpoint, having gained insight from American history – in this case, Black Wall Street/Tulsa, Oklahoma. Our perspective helps us better understand the exact natur

COVID-19 has forever altered standard business practices. Prior to recent events, Environmental, Social, and Governance efforts have been an afterthought. But the global pandemic demonstrates the fundamental role that ESG plays in corporate investments. The presentation focused on three main points: corporations’ social responses and disclosures to stakeholders regarding ESG factors, how investors incorporate ESG factors into business decisions, and how this crisis will affect what happens next. The first speaker, Martin Whittaker, is the CEO of Just Capital; a non-profit organization that strives to create a more just market in America through the collection of data. Whittaker discussed the importance of corporate social responses in today’s climate by addressing the Environment and Social aspects of the crisis. COVID-19 has resulted in hazardous working conditions, so companies should be prioritizing the wellbeing of their employees. According to Whittaker, the proper treatmen

"Committed though the government might be too small and minority-owned contractors, from the contractor standpoint making a living is never easy. Now they’ve got the COVID-19 situation. For what the landscape looks like for minority-owned businesses, Federal Drive with Tom Temin turned to Creative Investment Research economist and principal William Michael Cunningham." https://federalnewsnetwork.com/management/2020/05/maybe-sba-wasnt-best-choice-to-deliver-ppp-benefits-to-minority-businesses/

The 2019 Survey of Household Economics and Decision-making (SHED) interviewed over 12,000 individuals via an online survey launched in October 2019. To understand recent financial conditions and to see how circumstances for families have changed, the Federal Reserve Board also conducted a survey in April 2020 on the financial repercussions from COVID-19. The initial response from the 2019 survey showed that overall economic well-being had improved substantially relative to the overall economic well-being in 2013, the last time a similar survey was conducted. But differences in financial well- being still remained and widened slightly, across education levels and across racial and ethnic groups. Changes in monthly family income were a main source of financial strain. Financial support from family members or friends is one income source used to cover expenses. Most people worked as much as they wanted to, but many adults wanted more full time work. Few adults performed gig activities