Two presentations from the Sustainable, Responsible, Impact Investing Conference.

Economic Forcast

  • Tax reform will produce more equity inequality
  • Add $1.5 trillion to deficit
2017 actual 2018 prediction
GDP 2.1 2.6
Inflation 1.3 2
Unemployment 4.2 3.7
Fed Funds Rate 1.25 2.3
Stock market returns 14.3 -5% to 5%
Bond market returns 3.1 -2% to 2%
  • Savings is currently at a rate lower – the US needs wage increase
  • Productivity growth – up 0.6% (low) – productivity is critical to increase wages
  • Expect capital investment surge – difficulty finding workers, need productivity improvements
  • Capex (measures capital expenditures)
  • Uncertainty causes companies to put off large expenses
  • Corporate profits – stagnant at a high level
  • Oil price negative – that’s a positive for renewables
  • Leading indicators – high
  • Business cycle – positive
  • Recession possibility in 2018 low – 15%
  • Shiller Price/10 yr Earnings is at 13.12 – 10yr treasury is at 2.35%
  • Could see correction – but a bear market is unlikely
  • Downward pressure on CAPE ratio
  • Price above earnings
  • Emerging market spread also low
  • NAFTA = since nafta trade up in Mexico and Canada – down in US
  • Pension fund crisis – aging population

ADVOCACY AND IMPACT

  • Ceres, investor network on climate risk, as you sow, cfp, cdp,
  • Collaboration with SRI funds – can share advocacy with clients
  • PPG – still had lead in their paint
  • Cerner Corp – added best practices lobbying policy
  • Fifth Third – resolution on lobbying leads to climate risk
  • Systemic Change
  • Need uniform reporting
  • Adaption of intl human rights
  • Increase board diversity
  • Talk about shareholder advocacy resolutions with clients
  • Can delegate proxies to a 3rd party
  • 2018 focuses
  • Board diversity – targeting nine companies that have 0 women on board
  • Lobbying and political spending – no disclosure, concentration of lobbying on 50 companies
  • Climate
  • Renewable energy – energy efficiency
  • Deforestation
  • Financing climate change
  • Work on growing renewable demand – joined RE100

2018 focuses

  • Board diversity – targeting nine companies that have 0 women on board
  • Lobbying and political spending – no disclosure, concentration of lobbying on 50 companies
  • Climate
  • Renewable energy – energy efficiency
  • Deforestation
  • Financing climate change
  • Work on growing renewable demand – joined RE100

SOCIAL HSA

  • 2018 – $3450 individual, $6700 family
  • At 65 can not contribute
  • Covered by high deductible health plan – $1350 ind, $2700 family
  • HSA Qualified Expenses – deductibles, Dental, vision,
  • Can shoebox receipts – save receipts from now for next 30 years – pay for all expenses at retirement (in future)
  • 0.25% / year plus $45/year/account fixed expense
  • Plus manager fee
  • FPS Trust company is the custodian

Get a free Sustainable, Responsible, Impact Investing Guide

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Learn about making an impact with your investments without sacrificing returns.

AIO Financial, 520-325-0769

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