Advocacy and Impact

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

Economic Forcast

• Tax reform will produce more equity inequality
• Add $1.5 trillion to deficit

• 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