Zevin Asset Management

One of the mysteries of the commodity complex during the early days of the war in the Middle East was why crude oil prices had not risen even more? One partial explanation is that the U.S. and more than 20 other countries agreed in March to release portions of their strategic oil reserves to help offset the global supply disruption caused by the war.

However, there are limits to just how much oil the U.S. and other countries can release. The U.S. salt caverns where this oil is stockpiled can hold approximately 700 million barrels, and currently only 285 million barrels remain. At the current rate of drawdown, the U.S. is expected to fulfill its pledge to release 170 million barrels, by far the largest amount of any country, by the end of October. As the release of these reserves dries up, oil prices could face renewed upward pressure.

Shareholder proposals are often discussed in terms of cost, distraction, or competing agendas. But that framing can overlook another function they can serve: giving investors a way to surface risks and ask boards difficult questions.

A recent analysis from the Interfaith Center on Corporate Responsibility (ICCR) offers some striking examples. It looks back at shareholder concerns raised at Meta, Johnson & Johnson, and Monsanto/Bayer around data privacy, child safety, product safety, and glyphosate, years before significant litigation, settlements, or regulatory action related to those same areas.

We can't know what would have happened had companies responded differently. But the examples raise an important question: Shouldn't investors have a mechanism to raise potential risks before they become more costly?

That question is particularly relevant now, as the SEC has proposed rescinding Rule 14a-8, the federal framework governing the inclusion of qualifying shareholder proposals in company proxy materials.

ICCR's analysis is worth reading: https://bit.ly/4Ax2Fa3

Our Zevin team, together with some of our clients, spent an afternoon at Community Servings in Jamaica Plain, prepping produce, portioning meals, and packing delivery bags.

Community Servings delivers more than a million medically tailored meals per year to people managing critical or chronic illness and nutrition insecurity. We saw an operation that runs with precision and integrates volunteers into its workflow without skipping a beat. Clear systems, people who know exactly what they’re doing, and a great playlist in the background.

It was a great afternoon of working side by side, catching up outside office and contributing to an organization doing important work in our community. Thanks to the Community Servings team for welcoming us, and to our clients who joined us!

The first Friday of every month is when the U.S. payroll numbers are released. Today’s report showed a surprisingly large increase in payrolls and a seemingly healthy, low unemployment rate. But are there signs of weakness simmering beneath the headline numbers?

Part of the reason the unemployment rate remains so low is the steep downward trend in labor-force participation. As discouraged workers give up looking for jobs, they are no longer counted as unemployed, mechanically helping to keep the unemployment rate low. Related to this is the growing number of so-called long-term unemployed, or those who have been searching for work for 6 months or longer. More than a quarter of all unemployed Americans now fall into this category. Over the past 75 years, there have been only two periods with a more dire long-term unemployment situation, both occurring during severe economic crises (the Great Financial Crisis and the COVID-19 pandemic.)

This is another example of the K-shaped economy. Those who already have jobs are doing OK, while those out of work face increasingly long job searches, during which both their savings and job skills are eroding.

It also underscores the difficult position facing the Federal Reserve. On one hand, inflation remains stubbornly elevated, arguing for rate hikes. On the other hand, these labor-market indicators point to a potential stealth labor market crisis, arguing for lower interest rates. The Fed is being forced to choose between fighting persistent inflation and responding to a labor market that appears far weaker beneath the surface than the headline unemployment rate suggests.

AI is reshaping the investment landscape, but understanding the economics starts with the basics.

What are tokens? Why do they matter? And what could falling token costs mean for companies building, powering and using AI?

In our latest piece “The Token Economy” we introduce the economics behind AI tokens and the key questions we’re watching as the market evolves. With roughly a third of the S&P 500 exposed to the AI ecosystem, these are questions that matter beyond the technology sector.

https://bit.ly/4dkBapY

As AI moves from simple chat prompts to reasoning models and autonomous agents, the computing work behind each task can rise sharply and so can the cost. Bigger jobs. Bigger bills.

At the same time, competition is pushing the industry toward a new frontier: not just what an AI model can do, but how efficiently and cheaply it can do it.

We think price competition in tokens is building, and the effects will hit some players much harder than others. In our latest Our Stance, Senior Equity Analyst Richard Shih, CFA, looks at the emerging token economy and what we're watching as investors.

Read the full article: https://bit.ly/4hSkJo2

International student enrollment in the U.S. was down 20% since last academic year.

When talent moves, capital usually follows. It's one of the first places to watch when confidence shifts. The question for investors: Is this temporary or a sign that the U.S. is losing its edge as a destination for talent and capital?

This is a pattern we're tracking. The full picture, what it signals and what comes next, is in our latest investment update.

https://www.zevin.com/news-views/sell-america-buy-the-dips-investment-outlook

Two years of shareholder engagement, captured in our 2026 Impact Report Summary.

See where we pushed. Where work continues. Where we faced headwinds.

https://www.zevin.com/news-views/impact-report-2026

“No investment is neutral.”

On Beyond the Bottom Line podcast with Beth Liebman, Zevin’s President Sonia Kowal breaks down why this matters: where your capital goes, and who manages it, has real-world impact.

From wage-profit disconnect to the diversity gap in fund management, hear how shareholder voice can move the needle.

https://bit.ly/4qfmEoF