Al Nassr crash out as Kawasaki Frontale reach AFC Champions League Elite final    Saudi and Jordanian foreign ministers discuss Gaza situation    HR Ministry approves regulations for job ads and interviews in private sector    Will US tariff hikes affect Saudi Arabia? Kingdom largely insulated as oil exports remain exempt and non-oil sectors gain a pricing edge    Mataf nearly empty as entry to Makkah restricted to Hajj visa holders    Cinema revenues account for SR845.6 million in 2024 17 Saudi films among 504 films screened    Saudi Transplant Congress discusses scientific advancements and innovations on organ donation and transplantation    Mawani and Alissa Universal Motors sign agreement worth SR300 million to establish Logistics Zone at King Abdulaziz Port in Dammam    4 Chinese nationals arrested in Makkah for promoting fake Hajj campaigns    Saudi Arabia urges India and Pakistan to de-escalate tensions    Trump congratulates Canada's Carney as they agree to meet in 'near future'    Sánchez vows to uncover reasons behind massive Iberian power outage    Al-Khereiji at BRICS: Saudi Arabia a reliable and neutral partner in endeavors for de-escalating tensions    Al Ahli stun Al Hilal to reach AFC Champions League Elite final    Saudi market shows resilience in Q1 2025 despite global volatility: Report    SR200,000 reward for each player of the Saudi club winning AFC Champions League title    William and Kate celebrate anniversary on Isle of Mull    HONOR KSA expands its presence with new flagship Experience Store in Riyadh HONOR's first flagship store in KSA provides visitors with a premium experience, exciting offers and free services    Rock & Roll Hall of Fame picks Outkast but not Oasis    Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



New investment vehicles let investors tackle poverty, environmental issues
Published in The Saudi Gazette on 06 - 05 - 2008

In the current issue of Credit Suisse's “Global Investor”, analysts and external experts examine how business practices are increasingly being used for social purposes. The new issue, titled “Beyond Charity,” provides an overview of an innovative range of socially responsible investments that combine financial and social returns, and open new opportunities for investors. Microfinance, private-equity financing, and socially responsible funds are enabling investors to add social commitment to their investment strategies.
Microfinance has become an established tool in the fight against poverty. Its development over the
past decades, through all stages, from donation to investment theme and its own investment category demonstrates that potential lies in the well-balanced interaction of the different players with their various tools. Nowadays, also institutional investors are increasingly investing in microfinance.
Social investors are particularly important for investments at the bottom of the pyramid. Furthermore, financial service providers have become increasingly important as a link between investors and socially relevant initiatives. In this regard, Credit Suisse five years ago, in conjunction with other financial service providers, founded the Zurich-based responsAbility to specialize in social investments. Alongside microfinance, responsAbility covers a wide range of social investment themes such as freedom of the press, fair trade, and promotion of small and medium-sized companies.
Credit Suisse will launch in the coming weeks an index that encompasses social responsibility criteria in addition to strong valuation and performance characteristics. The index will be composed of stocks that rank highly on both social responsibility criteria and financial ratios, the latter being defined by HOLT, Credit Suisse's proprietary financial analysis tool.
The index will offer investors exposure to a portfolio of stocks that are screened for strong characteristics in terms of corporate performance, valuation and momentum using HOLT's proprietary framework. Coupled with a well-established method of identifying socially responsible companies, including assessing political, environmental, labor, and human rights issues, the approach used in the systematic screening process has shown in simulations to consistently identify stocks that collectively outperform the market.
Credit Suisse has in the past already successfully been providing products to socially responsible investors. The battle against the economic exclusion of the world's poor is no longer solely the domain of governmental and charitable organizations.
Today, a variety of organizations and business models serves the world's lowest income class. For instance, the Latin American ACP Group from Peru is a pioneer in promoting development via a business ethos, building a range of activities to help small entrepreneurs overcome social and economic exclusion.
Traditional charitable organizations are also looking more and more at market-based solutions. The global development agency Oxfam for example is taking a more differentiated strategy, combining traditional donation with market-oriented measures to benefit from both approaches. In addition, philanthropists are developing their own distinct models to use their wealth, and are establishing foundations which are run with the same vigor as their business success.
The Gatsby Charitable Foundation, established by UK-based Sainsbury retail dynasty, offers loans and technical support to small businesses in Africa to tackle poverty. The businesses must in turn develop sound business strategies. __


Clic here to read the story from its source.