Monthly Archives: January 2018

4 Strategies for Responsible Exits From Impact Investments

10 Weird State Taxes and Exemptions

How to Use RMDs to a Clients Advantage: Morningstars Benz

5 Peeks at a Hot New Variable Annuity Guarantee Paper

Most impact investors who have worked hard to help companies and projects generate positive impact want some assurance that the impact they have nurtured will continue and grow after they exit the investment.

A new report from the Global Impact Investing Network shows that the maturation of both the field and investors’ portfolios has drawn increased attention to exits, especially how investors try to safeguard the continuity of impact beyond exit.

The report says various risks associated with exit — such as those related to mission drift and business failure — can be mitigated with a responsible exit that ensures the investment makes a lasting impact.

“Impact investing has huge potential to generate positive long-term outcomes for society and the environment,” GIIN research director Abhilash Mudaliar said in a statement. “But investors need to have the confidence that they will be able to exit responsibly.”

On the basis of some 30 interviews with investors and entrepreneurs, GIIN shows that investors employ strategies throughout the life of their investments to ensure the sustainability of the impact that they seek to create.

Pre-investment: To increase the likelihood of continued impact after exit, investors often select investees based on whether impact is embedded in their business model or bound to financial success. They try to understand the business’s likely growth trajectory, which has implications for which exit paths and options will become available. They also consider founders’ commitment to mission.

At the time of investment: The structure of the capital provided can influence whether a business will be able to follow a sustainable growth path that leads to long-term success, because factors such as time horizon for return or repayment influence business decisions.

Also at this stage, two other considerations arise: alignment with co-investors on impact and growth strategy and the inclusion of language on impact in legal structures and documents.

During investment: Some investors work with investee company management to inculcate positive policies and practices for the long term, such as those that govern employment, sourcing of raw materials or customer service.

At the time of exit: Timing is key at this critical phase, since impact investors’ objectives at exit extend beyond their own financial success to include a company’s continued access to the right resources, networks and knowledge.

A related consideration is to select the right buyer — one who not only offers resources for the investee to grow and improve but also understands the value in the business model and shares a vision for growth alongside sustained impact.

The GIIN report includes four case studies that provide in-depth examples of responsible exits from impact investments and lessons learned by the investors.

— Check out Will Advisors Finally Embrace ESG and Sustainable Investing in 2018? on ThinkAdvisor.

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Top Undervalued Stocks To Buy Right Now

Fiat Chrysler (NYSE:FCAU) is well positioned both geographically and in product terms to reap the benefits of its position, as we go into 2017. CEO Sergio Marchionne has astutely managed the strategic and brand issues involved. The company is better placed than its traditional rivals Ford (NYSE:F) and General Motors (NYSE:GM) and the stock market has undervalued its strong position. Recent announcements detailed below only serve to reinforce this strong outlook.

Europe

My article in November covered in some detail the successful increases in market share the company continues to enjoy in both Europe and North America, and the potential of the Alfa Romeo brand.

The growth in Europe has been stunning. Figures released recently show that in the first 11 months of the year, the company sold 918,600 vehicles. This was an increase of 14.2% year-on-year. This compares to an industry growth of 6.9%. The growth has been consistent across all the major European countries.

Top Undervalued Stocks To Buy Right Now: Sina Corporation(SINA)

Advisors’ Opinion:

  • [By Leo Sun]

    Warren Buffett famously told investors to be “fearful when others are greedy, and greedy when others are fearful.” Dedicated followers of that mantra would probably dismiss Chinese online media giant SINA (NASDAQ:SINA) — which rallied 120% over the past 12 months to a six-year high — as a “greedy” play.

  • [By Shanthi Rexaline]

    SINA Corp (NASDAQ: SINA), which has a stake in Weibo, also tumbled.

    Weibo confirmed that the State Administration of Press, Publication, Radio, Film and Television of the People’s Republic of China or SAPPRFT has ordered local authorities to take measures to suspend audio and video services of some internet companies.

  • [By Ezra Schwarzbaum]

    It was quickly followed by two other Chinese social media sites: SINA Corp (NASDAQ: SINA) and Momo Inc (ADR) (NASDAQ: MOMO).

    Weibo Responds

    Weibo issued a press release later in the day saying it would cooperate with the State Administration of Press, Publication, Radio, Film and Television.

  • [By Steve Symington]

    Shares ofSINA Corporation(NASDAQ:SINA)rose 25.8% in 2016,according to data from S&P Global Market Intelligence, following a pair of stronger-than-expected quarterly reports from the Chinese internet leader in the second half.

Top Undervalued Stocks To Buy Right Now: Sinovac Biotech Ltd.(SVA)

Advisors’ Opinion:

  • [By Monica Gerson]

    Sinovac Biotech Ltd. (NASDAQ: SVA) is expected to post its quarterly earnings.

    Supercom Ltd (NASDAQ: SPCB) is estimated to post its quarterly earnings at $0.15 per share on revenue of $9.03 million.

Top Undervalued Stocks To Buy Right Now: Tele Celular Sul Participacoes S.A.(TSU)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Monday, telecommunications services shares fell 0.45 percent. Meanwhile, top losers in the sector included Shenandoah Telecommunications Company (NASDAQ: SHEN), down 3 percent, and TIM Participacoes SA (ADR) (NYSE: TSU) down 2 percent.

Top Undervalued Stocks To Buy Right Now: BanColombia S.A.(CIB)

Advisors’ Opinion:

  • [By Matt Smith]

    Bancolombia appears attractively priced
    Another Colombian company that appears under-valued is the Andean country’s largest commercial bank Bancolombia (NYSE: CIB  ) . For the year-to-date Bancolombia’s share price fell 17% because of a weak second quarter bottom-line. This decline was primarily caused by the bank’s net income plunging by 41% year-over-year because of mark-to-market losses caused by the value lost in the bank’s securities portfolio.

  • [By Javier Hasse]

    Analysts at Credit Suisse downgraded shares of Bancolombia SA (ADR) (NYSE: CIB) from Outperform to Neutral, while boosting their price target from $38 to $40.

  • [By Monica Gerson]

    Bancolombia SA (ADR) (NYSE: CIB) is expected to post its quarterly earnings at $0.77 per share on revenue of $945.66 million.

    Cellcom Israel Ltd. (NYSE: CEL) is estimated to post its earnings for the latest quarter.

  • [By Lisa Levin]

    Foreign Regional Banks: This industry declined 2 percent by 11:00 am with Bancolombia SA (ADR) (NYSE: CIB) moving down 3.7 percent. Bancolombia’s PEG ratio is 4.51.