Deficits and Mar­ket Churn

As we pro­ceed through the fourth quar­ter of 2018 we are expe­ri­enc­ing one of the most intense peri­ods of equity volatil­ity since this long bull mar­ket began in 2009. There are mul­ti­ple con­tribut­ing fac­tors at play includ­ing geopo­lit­i­cal ten­sions, expen­sive stock val­u­a­tions, ris­ing inter­est rates, and trade dis­putes. Region­ally, the Euro­pean Union exper­i­ment is start­ing to crum­ble with BREXIT sched­uled to hap­pen (or maybe not?) on March 29, 2019. The Euro­pean Cen­tral Bank is on the verge of revers­ing their unprece­dented mon­e­tary eas­ing pol­icy. Emerg­ing mar­kets are expe­ri­enc­ing their worst period of insta­bil­ity since the cur­rency crises of 1997. Chi­nese growth is decel­er­at­ing as author­i­ties strive to achieve a consumption-​based econ­omy. And in the U.S. eco­nomic and polit­i­cal uncer­tain­ties abound. As a result, we here at Zevin Asset Man­age­ment rec­og­nize that the out­look for global equity mar­kets has become increas­ingly risky through­out 2018 and par­tic­u­larly so in the third and fourth quar­ters of the year.

Q3 2018 Advocacy Update

In the third quarter of 2018, we continued using shareholder advocacy for positive impact and long-term risk management. We resumed our dialogue with Amazon in light of its recent change in wage policy; we wrote to 14 companies encouraging them to disclose energy and water use data; we began advising a local campaign to divest Boston’s retirement funds from private prisons; we saw our impact deepen as Intel, after pushing from Zevin, convinced the Responsible Business Alliance to adopt stricter supply-chain policies around prison labor; and we published our firm's first-ever comprehensive Impact Report. Pat Miguel Tomaino has our quarterly advocacy update.

Impact Report 2018

Zevin Asset Management proudly presents our first comprehensive review of the positive impact we create on behalf of our clients. Watch this video and read our new Impact Report below.

Our socially responsible investing approach creates positive impact in the world. When we help convince companies to develop greenhouse gas targets, that helps address climate change. And when we press big tech firms to strengthen their diversity strategies, each success potentially impacts the lives of thousands of workers.

We’re pleased to review all of this work in our first-ever Impact Report. Read to learn more about how we press companies for change, our approach to voting at shareholder meetings, our portfolio footprint, and the sound business practices that have made us an industry leader and a Certified B Corporation.

Click to download the report

Skin in the game: Why we’re leading a push for inclusion & accountability in the tech sector

The technology sector has historically excluded minority and women workers. Underrepresented people of color hold just nine percent of technical roles in the sector with above-average attrition rates. And women hold about one-third of entry-level tech jobs.

But inclusion isn’t just a matter of racial and gender justice. McKinsey & Company research shows that companies with leading approaches to inclusion are more likely to have above-average financial returns.

That’s why Zevin Asset Management began researching companies’ strategies to promote diversity and retain the most talented tech workers, no matter where they’re from or what they look like. We also channeled our clients’ investor voices for positive impact, challenging companies to link reasonable inclusion goals to the CEO’s paycheck.

Pat Miguel Tomaino has the story on our tech sector work and a look ahead in our latest Impact Brief. 

Thanks for reading, watching the video above, and sharing comments with pat@zevin.com.