Bank Of America Impact Investing


Impact Investing For Gender Equality

Nuveen, Bank of America, GIIN Execs on Impact Investing

The global gender pay gap will now take 136 years to close. In early 2020, the World Economic Forum had estimated that it would take 99 years to close the gender pay gap. But after just a year of the pandemic, WEF calculated that women were set back by nearly four decades. Black, Indigenous, Latinx, and other women of color who were already battling a larger pay gap than white women, were set back further. The United Nations UN) reports women and girls will bear the brunt of environmental, economic, and social shocks from climate changethe UN also says women and girls are early adopters of new technologies, first responders, and important decision-makers about sustainable home decisions.

Despite those facts, women, and LGBTQ+ people are taking control of finances by being on the board of corporations and banking their values. They are creating solutions to climate change, not being victims of it.

This is an important point for the many women and LGBTQ+ leaders in the socially responsible investing movement who are creating pathways for investors to support businesses that are run by diverse leaders and making better decisions for people and the planet.

At every level, from the village to the middle management to the executive suite, the more women there are in decision-making, the more likely climate is to be part of that decision, says Julie Gorte, senior vice president for sustainable investing at Impax Asset Management.

New Studies Assess The Risk Of Impact Investing And Find It May Help Investors Focus On The Long Term In A Short

White Papers Call for a Deeper Understanding of Long-Term Investment Risks and Rewards

Private capital is being called upon to solve some of the worlds most pressing social and environmental issues. At the same time, the business and investment worlds appear to be focused increasingly on the short term. In two new white papers, the Chief Investment Office of Bank of Americas Global Wealth and Investment Management division examines these converging trends and assesses the risks and benefits of impact investing.

The study looks at four distinct categories of impact investing to assess the risk and return profiles of these categories. They include: Socially Responsible Sustainable Thematic and Impact First. The study concludes that the risk is equal to that of traditional investments, except where completely new business models are being created to effect social or environmental changes. Moreover, the use of environmental, social or governance factors within investment analysis can actually help investors identify different types of risk. The study concludes that the major additional risk that impact investment strategies have is that they end up not having the intended positive ESG-based outcomes.

Impact investing as long-termism

Through its advisors, thought leadership, and investment offerings, Merrill Lynch Wealth Management, Merrill Lynch Private Banking and Investments Group, and U.S. Trust help position clients to invest according to their goals and values.

Bank Of America Private Bank Study Finds Younger Investors Turning To Alternatives Sustainability And Digital Assets To Create Wealth

75% of young investors say itâs impossible to achieve above-average returns solely with traditional stocks and bonds

Half of parents believe children arenât prepared to handle family money waiting until children are in their late-20s to initiate conversations about the transfer of wealth

Bank of America today released the 2022 Bank of America Private Bank Study of Wealthy Americans, which found significant generational differences in approaches to investing, giving and wealth planning. The findings show that the shift in influence and control over the largest share of U.S. personal wealth â $84 trillion is expected to pass primarily from the baby boomers to Gen X and millennials through 20451 â could have significant implications for families, wealth managers, charitable organizations and financial markets going forward.

A message from Jeff Busconi, Head of Private Bank Services at Bank of AmericaVideo Transcript

âWealth planning is inherently multi-generational,â said Katy Knox, president of The Private Bank at Bank of America. âAs we see among our client families, financial behaviors and values take shape early in life and live on in the legacies passed from one generation to the next. These research findings point to a larger role wealth advisors and the financial services industry is playing in helping families transition wealth and meet the needs of the next generation.â

Katy Knox

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Blended Finance And Impact Investment Competition Supports Social Equity And Economic Opportunity

The Center for Sustainable Enterprise at the University of North Carolina Kenan-Flagler Business School announced today a new student competition supporting the centers Invest for the Future initiative. Through the competition students will learn about social impact and environmental-themed financing and investment models, such as blended finance and impact investing. This initiative is in partnership with Bank of America, a founding sponsor of both Invest for the Future and the new competition.

The competition, titled Launching Investment for Future Transformation or LIFT, is a pioneering blended finance challenge asking students to propose investment and finance solutions that focus on using sustainability to drive social equity and economic mobility.

Students will learn about blended finance, an approach that helps to stimulate and mobilize additional private capital to scale sustainable development and can include public or philanthropic funding. The initiative aims to expand knowledge about how blended finance can help scale impact for sustainability projects that might have been unable to gain funding due to potential associated risks. Students will receive coaching on how to develop sustainable solutions and build deeper expertise in these financing structures.

The competition will be held this fall, and details include:

New Ways Of Providing Care

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AltaMed Health Services Corporation provides primary health care for Hispanic-Latino communities in the Southern California area. When the coronavirus hit, we gave AltaMed a $500,000 grant to support outfitting and operating eight evaluation and testing sites in the area. Staff and underserved patients quickly adjusted to new ways of delivering care, which aided both people and the community in recovery.

We all have a role to play in helping move communities forward an understanding that forms the foundation of our long-standing commitment to the people and communities we serve. And theyre at the heart of our $1.25 billion commitment over the next five years to advance racial equality and economic opportunity.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.

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What Is Impact Investing

Impact investing is relatively new, and it is a term used to describe investments made across multiple asset classes, sectors, and regions. ðºï¸

Impact investments are investments made in attempts to create a quantifiable social and environmental impact in coordination with good financial return. Impact investments can be made in both developing and established markets, and focus on increasing the range of returns from below market to meet the current market rate. However, it is important to note that these potential returns with impact investment are contingent on the investors financial goals. ð¤

As impact investments grow in popularity across the market, a newfound sense of capital is being extended to face global predicaments across multiple sectors â such as sustainability in agriculture, sourcing renewable energy, overall conservation of value resources, healthcare, education, and providing basic resources and housing for developing countries and communities. ðï¸

Itâs clear that impact investing has a positive impact on a multitude of social and environmental issues, but what is the ultimate goal of impact investing? ð¤

âThe main goal of impact investing is to create both tangible, financially lucrative return while also benefiting social and environmental sectors. ð

Jpmorgan Bank Of America Invest In L’attitude Ventures’ First Fund

Aug 3 – L’ATTITUDE Ventures on Wednesday closed its first institutional fund raising over $100 million with an anchor investment from Wall Street giant JPMorgan Chase and initial investments from Trujillo Group and Bank of America .

The fund which intends to invest in early-stage U.S. companies that are either founded or run by Latino entrepreneurs also had investments from Barclays , Royal Bank of Canada and Cisco, among others.

“Latino-led businesses are critical to the U.S. economy but often lack access to capital and resources for growth,” said Jamie Dimon, chief executive officer, JPMorgan.

The investment is intended to build on the largest U.S. bank’s broader commitment to supporting Latino entrepreneurs and small businesses in the country, Dimon added.

High-growth companies, particularly in the technology and healthcare sector have boomed since the start of the pandemic, with several large venture capital and private equity firms betting on the potential of the startups.

Several large financial firms have looked to increase their diversity footprint and support minority communities since 2021 as impact investing gains momentum. Companies are becoming more conscious of backing businesses and startups from traditionally underrepresented socio-cultural backgrounds.

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What Are We Doing As A Company

As one of the worldâs largest financial institutions, we take a key role in building a more resilient future. Through our strategy of responsible growth, we are deploying capital towards a more sustainable economyâhelping to create jobs, develop communities, foster economic mobility, and address societyâs biggest challenges around the world.

Learn more about what weâre doing to foster sustainability and have a positive impact.

Integrating Your Values Into Your Portfolio

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We help you find market value in your values. Your wealth management professional will consider your ethical priorities, along with your desired financial objectives, to create your portfolio.

Impact investing includes environmental, social and governance considerations. We offer socially and ethically responsible investment options that seek to mitigate risks and contribute to ESG solutions.

Our Asset Management Group includes a dedicated team of analysts with deep experience in analyzing and assessing ESG funds. Our excellent reputation with community partners helps us navigate ESG considerations and because we dont offer proprietary products we’re able to offer what we believe will be the most suitable options based on your needs.

Environmental climate change, energy efficiency, pollution, water scarcity or biodiversity

Social human rights, gender and racial diversity, education, labor standards or employee engagement

Governance board composition, executive pay, audit committee, lobbying activities or political contributions

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Why Choose Impact Investing

Impact investing gives new and improved meaning to philanthropy â by demonstrating that it is possible to benefit both social and environmental issues whilst still contributing to personal, financial gain. ðª

Philanthropy implies that projects that provoke substantial change to social and environmental sectors can only be made by superstars or millionaires that have superfluous cash laying around. The investment market pontificates the values of achieving measurable financial returns and financial gain.

Impact investing defies both! ð

The market of impact investing provides a wide variety of viable opportunities for investors to contribute to social and environmental issues through investments whilst simultaneously working towards a financial return. ð¸

How Does Impact Investing Work

Impact investing works based on several core values, missions, and principles.

First comes the intentions behind the investors desire to to create a positive social or environmental change through their investments.

ðThis is a primary key component of impact investing, and if there is no intention behind the investment â it ultimately cannot be constituted as an impact investment as it wonât have an âimpactâ on any other sector beside the economic one.

Next come the investors’ expectations on financial return. Similar to all other investments, impact investments are able to generate a reasonable financial â often at least at minimum, a return of capital.

An investor interested in impact investing should decide their range of return expectations and asset classes. In other words, anyone using impact investments should be prepared to make risk-adjusted moves for financial gain when necessary â and consider fixed income, venture capital, and private equity before and while using impact investments.

Lastly, itâs imperative that the owner of the impact investment is committed to measuring the data and sharing these numerical reports with others on the environmental or social progress that their investment is creating.

ðThis is another quintessential part of impact investing, which aligns with other ESG values such as transparency.

An investorâs method to measure their social or environmental impact is contingent on their goals and capabilities.

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Bank Of America Private Bank

Bank of America Private Bank helps high-net-worth individuals, families and institutions grow, preserve and share wealth and achieve unique goals. Private Bank client teams take a tailored approach to delivering specialized services and expertise, providing boutique-style private banking that leverages the global resources of Bank of America, one of the worldâs leading financial institutions. These dedicated teams provide customized solutions for wealth structuring, trust and estate planning, and philanthropy, combined with leading investment capabilities and a full range of sophisticated banking and lending solutions. The business also offers specialized capabilities in the areas of art services, sustainable investing, business ownership and succession planning, and specialty asset management.

Making Homeownership A Reality

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As his five-person family outgrew its Chicago apartment, Johnson Bam was looking to buy a home. He made that dream a reality by learning how to budget, save for a down payment and manage expenses through his local Better Money Habits® program.

Our Better Money Habits® resources and tools help people learn about everything from credit cards to taxes to saving for a home, college, retirement and more.

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The Case For Sustainable Investing

  • Global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the $140.5 trillion in projected total assets under management.1
  • 68% of ESG indices beat their local benchmarks on a global basis, reaching the highest hit rate in recent five years in 2021.2
  • 69% of U.S. consumers are actively using their wallets to support brands or industries that benefit the environment or society. And a further 20% say they are interested in learning more.3
  • 77% of investors want their advisors to ensure that their investment strategy is aligned with their personal values.4
  • 73% of U.S. consumers see sustainable investing as an opportunity, 72% see sustainable investing as innovative and 69% agree that sustainable investing is the future.5

Do It Yourself Or Find Someone To Do It For You

Impact investments can be done alone, but sometimes they can yield more success if you seek third-party assistance. Itâs easy, too â because you can ask for help with impact investments with robot-advisors! ð¤

Robot-advisors can help create personalized portfolios for impact investing, so you or your company can find solace in positively contributing to the social or environmental areas most meaningful to you. ð

If you choose to work with a robot-advisor, no other steps will be necessary. However, if you choose to continue on your own â it will be necessary to open a brokerage account, so that you can buy and sell various assets to be a part of your impact investing portfolio. ð

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Seek Potential Impact Investments

It is important to seek investments or financial partnerships with entities that have excellent ESG scores. From here, it is important to strive to gradually increase your impact on each investment to ensure both continued financial growth, and improvement in the desired social or environmental sector. ðð»

Overall, there are many different types of investing that strive to promote sustainable growth â but it is clear that impact investing is one of the most beneficial methods of investing an individual or business could choose to implement more sustainable business measures and simultaneously promote the importance of ESG values.

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