ATP Finals | Impact Investing | Movie Sequels

The 2019 men’s tennis season comes to an end this evening, with the ATP Finals showdown at the O2 Arena. The tournament has featured the top eight players of the year who were split into two groups, each playing a round-robin format. Stefanos Tsitsipas and Dominic Thiem will go head to head at 6pm for the prestigious title. However, it will soon be a case of ‘new balls please’, as the home of the ATP Finals is moving in 2021, having been held at the O2 since 2009. The finals have been a huge success in London, drawing more than 250,000 people each year and accounting for 15% of the sport's governing body’s revenues. So the next stop is Turin. Really? It’s hardly a renowned hot-bed of international tennis. It is, however, home to Italy’s largest indoor stadium, and, shock horror, vast sums of money were behind their winning bid. The prize money for the tournament will increase by more than 50%, whilst it will also put the men on a par with the women (yes...that is the right way round). The prize fund in London this year is $9m; in Shenzhen last month, at the start of a 10-year run in China for the women’s finals, it was $14m. All round, great work if you can get it.

The good and the great of the property industry (and The Weekly too) descended upon BlackRock’s London offices on Thursday morning to attend the joint IPF/AREF seminar on institutional real estate impact investing. This was an event that had to be be moved from earlier in the year to accommodate the over-subscribed demand to attend and it still had a large waiting list of people hoping for some last minute drop-outs. So, what did the lucky ticket holders learn? That investors are increasingly wanting to see positive social outcomes, in addition to their investment returns. ‘In addition to’ not ‘at the expense of’ financial returns according to Peter Hobbs of bfinance. More and more institutional capital is looking to address society’s most pressing challenges. Building more affordable housing. Implementing carbon neutral strategies. Regeneration. Creating employment. Offering apprenticeship schemes. Creating homes for the homeless. All big ticks. Much of the real-estate focused activity to date has been in the residential space, although more recently there is recognition that commercial property can deliver social good too, through enhancing health and well-being, or education and skills. The big challenge the delegates were left to consider was just how to measure the impact. No industry benchmark exists, yet, but it’s coming. Rest assured that the impact train has definitely left the station.

There is, generally speaking, a law of diminishing returns when it comes to movie sequels. We’ve all had the debate before. Can you name a film sequel that’s better than the original? Godfather II? Home Alone 2? Rocky 2? The Bourne Ultimatum? Answers on a postcard please. This Thursday, Frozen II is released in UK and US cinemas and it's fair to say that it has plenty to live up to! It’s been six years since Frozen became a worldwide phenomenon, so it was always inevitable that a sequel was on the cards. No-one could ‘let it go’ (sorry!). Since its release in 2013, Frozen has earned over $1.2 billion worldwide, becoming the fifth-highest-grossing film of all time and by far the highest-grossing animation film. That’s not to mention two Oscars, a Bafta, a Golden Globe, the official singalong YouTube video having more than 940 million views, and a DVD that became Amazon’s best-selling children’s film of all time based on advance orders alone. The film’s merchandise consistently tops “hottest toys” lists, there’s a Broadway show, and when Frozen II was announced back in 2015, Disney’s share price jumped $4.28 in a single day. No pressure then. The signs are, it seems, of another ice-shattering success. First day pre-sales for Frozen II eclipsed those for all other animated films and if estimates hold true, Frozen II will make more than $100 million over its opening weekend, making it the biggest opening weekend haul for a Walt Disney Animation movie ever.