The
2005 UCLA Anderson AASM Conference will feature the following
panels:
Investment
Management at the Personal Level
Themes and Topics: Personal investment management
among the African American community has seen some disturbing
trends in recent years. Savings rates among the community
are at an all time low, which is going to lead to tremendous
problems as expected life-spans continue to increase. If these
trends do not change, an entire class of elderly citizens
will be left without means to support themselves through their
later years. Part of the blame for these trends rests in the
poor levels of education in wealth management and wealth creation.
Instead of allocating disposable income to savings and investments,
people are consuming their wealth on items that do not hold
value. This panel will focus on these trends and the efforts
being made to reverse them.
Speaker: Prominent African-American financial advisor
with urban community focus.
Investment
Management at the Community Level
Themes and Topics: Many financial institutions that
serve African American communities are committed to a double
bottom line: profitability and community development. Through
financial services, loans and other development activity,
these socially responsible financial institutions work to
ensure that underserved communities have the necessary inflows
of capital to support homeownership and small business development,
the traditional American vehicles for upward mobility. Novel
financial products such as community reinvestment notes, development
deposits, micro-loans and small business incubators are attracting
new influxes of seed capital into African American communities.
This panel will focus on how this new market can be encouraged
and harnessed.
Panelists: Representative from the SBA, owner of
local black owned bank, local small business owner, representative
from a micro-lender/socially responsible bank, and member
of Inglewood city council.
Investment
Management at the Entrepreneurs Level
Themes and Topics: While government agencies like
MESBIC and the SBA have historically provided loans and equity
for African American businesses, these agencies have recently
shifted their investment screening mechanisms in an effort
to focus on businesses with existing revenue streams of over
$1 million; these types of firms make up only 3% of all minority
owned businesses. Unfortunately, highly innovative firms pursuing
new technologies do not tend to fit this profile which means
that African American entrepreneurs pursuing high tech endeavors
have one less potential source of capital. Additionally, African
American owned firms continue to be under-represented in the
portfolios of venture capital and private equity firms. This
panel will focus on the issue of where innovating African
American entrepreneurs are going to go for equity investment
in risky new ventures and whether or not opportunities exist
to help foster entrepreneurial risk-taking.
Panelists: Member of venture capital and private
equity community as well as local entrepreneurs.
Social
Responsibility at the Corporate Level
Themes and Topics: As multi-billion dollar corporations
and investment management funds continue to generate supernormal
returns as a result of their consumers and the environment
created by our societal systems, more corporate initiatives
have started to focus on fulfilling civic responsibility obligations.
These efforts have manifested themselves in myriad ways, ameliorating
problems at both the individual and community level. While
a homebuilder like KB Home focuses its efforts on improving
urban communities through real estate initiatives, a company
like Arial Capital Management has focused its efforts on educational
initiatives. This panel will focus on trends in the types
of socially responsible activities being pursued at the corporate
level as well as trends in the participation rate among corporations.
Panelists: Investment fund executive, executive from
KB Home, executive from GE capital, and community development
officer from General Mills.
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