Zevin Asset Management

Meet Deidra Beaumont, Zevin Asset Management’s new Communication Associate and Office Manager! We are happy to have Deidra on board to support our communication and marketing needs and help play a key role in advancing our mission to create positive impact beyond financial returns. Welcome to the team, Deidra! Learn more about Deidra and her experience in financial services: https://lnkd.in/eG8GKcbx

The Chinese economy has slowed significantly since earlier this decade, with the latest weakness stemming from a weak real estate market. While we don’t invest directly in any Chinese companies, China’s economic performance impacts the whole world and especially their Asian neighbors. Japan in particular is vulnerable to a Sino slowdown, as Japanese exports will be impacted by lower external demand. While the Japanese economy is expected to be buoyed somewhat by domestic demand thanks to strong wage gains, the economy as a whole and corporate earnings will be weaker in the near term than otherwise would be the case because of the outlook for exports. This, in turn, could weigh on Japanese share prices.

Maybe it really is different this time. A typical business cycle usually consists of an overheating economy followed by higher policy rates imposed by central banks. This eventually leads to a slowing economy, and in 6 out of the last 7 monetary tightening episodes in the U.S since 1970, the economy has fallen into recession. Outside the U.S., the experience has been largely the same, with some economic softness but no abrupt and violent collapse in economic activity or corporate earnings. As a result, the All Country World Index (ACWI) has returned 19% year to date through the third quarter of 2024 with similar double-digit returns across all national markets in our universe. Looking forward to the rest of 2024 and into next year, we estimate the likelihood of a U.S. soft landing is higher today compared to a few months ago. The global economy has withstood the tightening cycle remarkably well and is now in the loosening phase. Curious about what’s driving the markets? Take a look at Zevin Asset Management’s latest Market Outlook: https://lnkd.in/eDTCwCE6.

Missed the live event? We've got a new tutorial up on the Racial Equity Investment Database! https://lnkd.in/ghsMAhEM Sharlene Brown provides a walkthrough of the tool and the motivation behind our RE-Allocate campaign, which seeks to empower investors to shift capital to the US's rising majority: https://lnkd.in/gAuX5-58 Adasina Social Capital, Boston Common AM, Common Future, Harlem Entrepreneurial Fund, JUST Capital, Nia Impact Capital, Self-Help Federal Credit Union, Boston Ujima Project, Zevin Asset Management #equity #finance #investment #impact #capital #shift #database #tool #launch #tutorial

At Zevin Asset Management we go beyond financial returns and use our investments to drive meaningful change. In our Third Quarter Impact Update we highlight some of the many ways our shareholder engagements and perspectives on sustainability issues have paved the way to drive positive change. We are excited to share some of the significant strides taken this quarter to reflect how we are managing portfolios to showcase our values of sustainability and responsible corporate practices. In this quarter's update, we kicked off the 2025 proxy season filing a shareholder proposal focused on Apple’s lobbying spending, and we were encouraged to see Chubb decide to stop insuring a major gas project in Texas. A recent visit to an?Amazon fulfillment center revealed?firsthand the disconnect between human needs and the demands of automation. We also celebrated Unilever’s long-awaited exit from Russia. These efforts reflect our commitment to fostering transparency and ethical practices in the corporate world.? ? You can read about these updates and more in our Q3 2024 Impact Update: https://lnkd.in/egU4-VH4

Continuing with yesterday’s insights, hand-in-hand with a strong labor market are robust wage gains over the last few years in the U.S. Since immediately before the COVID-19 pandemic, average hourly earnings in the U.S. have risen 24%. This compares to the price of goods and services purchased by U.S. consumers rising “only” 18% over that same timeframe. While elevated price levels make headlines every day, it’s often overlooked that income gains have been even stronger. Wages outstripping costs of goods and services is obviously a good thing, allowing consumers to use that extra cash to pay off debt, save, and invest. The current economic and monetary tightening cycle has so far been unique with the labor market remaining very healthy, strong personal consumption and capital investment and wage growth surpassing generalized inflation. If the trend continues, a soft landing is very possible, and the likelihood of extreme market volatility is falling thanks to successful monetary and fiscal policy.

The U.S. labor market remains remarkably strong despite the central bank having pushed up interest rates more than 5% starting in early 2022. Last week the Bureau of Labor Statistics reported companies continue to add surprising numbers of new jobs to their payrolls. It seems the Federal Reserve has managed to tame inflation back towards their target level without much of the usual negative impact on employment levels. But sometimes good news is bad. The fact that employment remains so strong, could lead to increased worries at the Fed of a reemergence of inflationary pressures and prevent the central banks from cutting their policy rate as much as markets anticipate. Nonetheless, strong employment means strong personal consumption and since consumption makes up about two thirds of the economy, it also means a strong overall economy. Stay tuned for more insights on this topic tomorrow!

Our “View from the Top” capped off the Investment Adviser Association’s 2024 Leadership conference in Boston last week. Anne Putnam and Chat Reynders and I shared our candid perspectives with Jonathan Stern on the challenges and opportunities for #RIAs including talent management, data and technology, #marketing and distribution and #sustainable investing.

While preparing my opening remarks for Zevin Asset Management's client event in Boston last week, I reacquainted myself with some of the hysterical language put out in June by the House Judiciary Committee about the bogeyman that is #ESG investing. If you missed this ridiculousness the first time around, here are some choice quotes accusing sustainable investors of being in a “climate cartel, handcuffing corporate leadership and muzzling corporate free speech”. Apparently, we are “colluding to declare war on the American way of life by being part of a cabal forcing companies to decarbonize” and “attacking American consumers”.?You can’t make this stuff up!? While I wish we were as successful as they say we are, their aggressive stance is a sign that our work is having an impact, that our work to change corporate behavior is effective. Unfortunately, some investment firms and corporations have been scared off by these threats but Zevin Asset Management continue to work in a broad coalition of key allies among investors and civil society organizations given our dedication to so many important systemic issues that affect people’s lives and the health of our planet. ?https://lnkd.in/eMV_TmwC

Just wrapped up a fantastic client event, and we could not be happier with how it turned out! It was great to connect and share insights with everyone. A special thank you to everyone who joined us, it wouldn’t have been the same without you. Also, a huge thank you to the amazing Zevin team for the wonderful speeches and execution of the night. #ZevinAssetManagment #ClientEvent #Networking