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The «Ӱҵ Report: Latest Returns Data Make Powerful Case For Just Investing

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This week, we saw some powerful numbers that support the investment case for just business leadership. 

First, our own data. As of June 30, 2024, our flagship broad-based index of top companies in every sector – the «Ӱҵ U.S. Large Cap Diversified Index – has out-performed the Russell 1000 cap-weighted benchmark by 1.5% year-to-date and by 13.8% since its inception almost 8 years ago. The «Ӱҵ 100 (the top 100 companies in our overall rankings) has outperformed its benchmark by 6.7% this year and by 44.8% since its launch in 2019. The spread between the top 10% and bottom 10% of companies in «Ӱҵ Capital’s rankings is especially impressive, and we’ll be releasing those numbers soon. As a reminder, these are companies that, compared to their peers, invest more in workers, pollute less, give back to communities more, create more jobs, and do right by all their stakeholders. Companies that are more just, in other words. 

Second, determined that over a 10-year period, companies in the S&P 500 that created the most value for customers, employees, suppliers and communities also had the highest shareholder returns. The chart below summarizes the data so I won’t repeat it here, but it makes a compelling case for stakeholder value creation. 

Finally, a word on fund flows. Even with ESG seemingly in decline and out of favor, it was fascinating to that ESG funds made up 21% of all alternative capital raised this year as of April. Whereas US ESG stock-market funds saw $8.8 billion of outflows in the first three months of 2024 (and $13.2 billion of outflows in 2023), U.S. alternative asset firms raised $27 billion for ESG funds in 2023, and another $17 billion in the first four months of 2024. European firms reportedly raised $98 billion in total over the 16 months.

For investors, the search for superior risk-adjusted returns transcends pretty much everything. Whether it’s in more passive index investing, active trading, or strategic alternatives, applying a just, stakeholder-based lens can be the key to future success.  

Be well, 

Martin

Quote of the Week

Rather than our traditional “Quote of the Week”, we want to highlight that in the wake of the assassination attempt on former President Trump, CEOs across sectors are speaking out on what this means for America, the election, and business. Read anonymous interviews from or a collection of statements from . 

«Ӱҵ Events

August 6th 2024: Investing in Care: Proving the Payoff of Caregiving Benefits

Join us for a candid discussion about the challenges and opportunities of investing in caregiving benefits and potential payoffs for doing so. How are companies currently leading on caregiving benefits? What do you need to know about your workforce to create quality offerings? Learn first-hand from a company’s journey to significantly expanding their caregiving benefits.

Speakers: 

Donnebra McClendon, Global Head of Culture and Inclusion, Dayforce

Joseph Fuller, Professor of Management Practice, Harvard Business School

Nicole De Santis, Partner, BCG

Ashley Marchand Orme, Director of Equity & Stakeholder Leadership, «Ӱҵ Capital

«Ӱҵ AI

Fortune looks at how, across the board,

PwC estimates that AI will add over $15 trillion to the global economy in 2030, through productivity increases and consumption-side effects.

Must Reads

Axios reports that The Society for Human Resource Management (SHRM) dropped the word “equity” from DEI strategy, stating, “, which have led to societal backlash and increasing polarization.” While DEI continues to be under fire, USA Today reports that the majority of companies are . 

Similarly, Axios argues that

Marathon Oil agrees to pay $64.5 million in fines for violating the Clean Air Act, the largest penalty of its kind so far.

Good news: There are fewer low-wage workers in America than ever before.

Chart of the Week

This chart comes from a 10-year study from Bain & Company that found that companies that saw high financial value and high stakeholder value delivered the highest shareholder returns.

Have questions about our research and rankings?