Welcome to our #246 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we highlight the interview with Marypat Smucker on The Purse Podcast. We talk about gender lens investing and what’s changed in the market since 2022.
Listen to the full interview here.
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And you can review the news in brief so you stay on top of global financial, economic and investing trends.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
Gender lens investing: an update
We interviewed Marypat Smucker on The Purse Podcast about gender lens investing and what’s changed in the market since 2022.
We interviewed Marypat Thenell Smucker on The Purse Podcast.
Marypat is a CFA, MA Economics, MSc Finance, is Co-Founder and Principal of Parallelle Finance. She has published a range of research pieces on sustainable and gender lens investing, including Parallelle’s in-depth quarterly reports on sustainable investing and women in the global workplace.
We talk about (including) gender lens investing, why invest through a gender lens, gender bonds, women in leadership and how to accelerate the pace of change.
Here is a short excerpt from the interview
Jana: “What would you say has changed in the market since 2022? Is there anything that sticks out for you in addition to the growth that we're seeing?
Marypat’s response:
‘… we've talked about the AUM growth in gender lens equity funds. Which is one of the areas that we track and cover. And we are also seeing a steady growth in the number of equity funds.
So 18 of the 42 equity funds in our data set have a history of less than three years. That is really steady growth.
And in terms of significant trends: there's definitely one that merits highlighting and is in both public and private market gender lens investing.
This is a focus on investing in women's leadership in climate solutions. So in the private markets, this is a focus on investing in women founders of climate solutions and products. This is another growing area of focus for women-led funds ie to invest in women founders of climate solutions, women as the agents of the actors of addressing climate change.
In the public markets, this is also happening. The gender lens equity funds do tend to include a pretty strong ESG screen, most of these funds. In equity funds gender lens is essentially a thematic ESG strategy.
And recently the asset class is experiencing a gender plus climate trend that goes beyond this ESG foundation to focus on investing in companies, displaying both climate and gender equality leadership.
So one example of this is two suites of funds that are offered by Morgan Stanley. They are Calvert funds that have been launched in Europe and the US. And they employ unique gender and climate investment criteria.
The Calvert principles for responsible investment are a well-known framework for sustainable investment criteria, and these funds are constructed within that framework.
And the European suite of these funds are domiciled in Luxembourg, and they are in scope with Article 9 of the European Sustainable Finance Disclosure Regulation.
And this suite also includes an emerging markets gender lens equity fund. It was exciting to see that entry into our data set. The other suite of funds is domiciled in the US and both of these groups of funds employ unique gender lens, investment criteria and climate criteria.
So they are a good example of this gender plus climate trend that we are seeing in many corners of gender lens investing.
Another trend is something that we are seeing in gender bonds again, back to the gender bonds. And that is that these bonds are in growing numbers being listed on local exchanges.
Also there is a trend toward international exchange listings and cross listings for some of these bonds cross listed on the local exchange and also an international exchange.
So that is really going a long way toward developing this asset class….
Listen to the full interview here.
News in Brief
Financial news
On Wednesday, Wall Street suffered worst day since 2022 as Tesla and Google earnings disappoint.
India quickly catches up to China as the world’s largest emerging market. Indian stocks comprise nearly 20% of the MSCI Emerging Markets index, while China has dropped to a quarter from 40% in 2020.
China surprised markets by cutting interest rates, its first such move since Aug 2023.
Russell 2000 outperformance vs S&P 500 continues. RTY vs SPX break out is at its widest levels since Feb 2000, > +9% MTD
The US yield curve steepener trade continues with US 2s/10s yield spread rises to -14bps, highest level since Jul 2022.
US GDP growth accelerated to 2.8% in Q2 from 1.4% in Q1, outpacing expectations of 2.0%.
Rachel Reeves expected to reveal £20bn shortfall in public finances. Chancellor may raise some taxes in the autumn due to what Labour describes as its ‘shocking inheritance’ from Tories.
UK business activity expands in ‘encouraging start to second half of year’. S&P Global flash composite purchasing managers’ index shows July rise for manufacturing and services sectors.
The comeback of active? ETF share of total trading declines as investors have turned away from index-tracking funds.
Crypto: bitcoin, ethereum, DeFi
Donald Trump says he will create a ‘Bitcoin national stockpile’, calling cryptocurrency ‘the steel industry of 100 years ago’, as he courts the cryptocurrency crowd at Nashville conference. Trump said he'd lay out a plan ‘to ensure that the United States will be the crypto capital of the planet and the bitcoin superpower of the world’.
Over the week, BTC is up close to 2% and trading hands for $67,920. Thousands of people were in Nashville for the annual conference dedicated to Bitcoin.
Ether ETFs trade Over $1bn in strong crypto-fund debut. Several of the funds are finishing the day among the top 50 highest-traded US ETF debuts of all time.
Ethereum is down 7% over the week, despite the sought-after funds finally launching. Investors have been cashing out of the main Grayscale ETF.
Solana rose nearly 8% to enter the weekend at $183.80.
A formerly dead Solana-based meme token Brat Summer (BRAT) shot up in value after pop star Charli XCX endorsed Democratic presidential nominee Kamala Harris.
Sen. Cynthia Lummis announces bill for US Treasury to buy 1m bitcoin worth $68bn.
The Purse Podcast
We cover the following on our conversation:
What is gender lens investing?
Market update
Gender bonds
The gender lens scorecard
Investing in gender equality
Women in leadership
Directing capital to gender lens funds
Please enjoy! Listen on Apple Podcasts and Spotify+
Coffee Break? Read This
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and janicka. We do no provide investment advice. Please do your own research or speak to a financial adviser.
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