JSG is a new values-based investing strategy designed to identify companies that are expected to outperform by focusing on U.S jobs, security, growth

We invest in companies that contribute to the health of the U.S. labor market and the creation of economic opportunity for all Americans.

We invest in companies that invest in America’s security, including by securing supply chains and data, supporting U.S. national security aims, and contributing to strategic resource independence.

We invest in companies that increase the healthy growth capacity of the United States, particularly by investing in their businesses and new technologies in ways that help create broad-based American prosperity.

We Believe JSG practices are good for long-term financial returns, good for business, and provide benefits to American Communities.

Academic research shows companies that invest in their workforce deliver significant alpha.

The benchmark study in this literature finds that the companies that were the best places to work generated 2.3% to 3.8% of alpha per year over their peers.

The most jobs-supportive companies (blue) outperformed their peers, whether peers are determined by industry (green) or other firm characteristics (red).

Source: Boustanifar and Kang (2021)

Performance of $1000 initial investment

This graphic does not reflect Amberwave investment performance, but is drawn from an academic study of company returns. It is presented for illustrative purposes only.

JSG Portfolio Impact: Security

There is extensive literature relating supply chain vulnerabilities to stock underperformance and production loss.

Negative market shocks can ripple through the supply chain, causing production delays and demand disruptions.

The more globalized a supply chain, the wider the universe of possible shocks.

We expect companies that invest in their supply chain security and prepare for exogenous shocks to outperform their peers over time.

Graphic: U.S. supply chains are more exposed to external factors than other countries’ supply chains

Note: Each dot represents a country-industry. Size of dot corresponds to economic importance, and distance between two linked dots to size of economic relationship between the two dots.

Source: Zhang (2021)

Corporations are increasingly recognizing the risks of dispersed, just-in-time supply chains, particularly as a result of disruptions due to the pandemic, natural disasters, foreign government crackdowns as in China, trade wars and industrial policy.

There is bipartisan consensus for reshoring of supply chains to reduce our vulnerabilities and improve competitiveness.

We expect companies engaging in reshoring to take advantage of these trends, and deliver outperformance in the coming years.

JSG Portfolio Impact: Growth

Cutting-edge industries are particularly important to cementing America’s place as the technological leader of the world. We expect these industries to see outsized government support and attention as a result of the bipartisan recognition of the need for increased industrial policy.

Innovation and competitiveness are critical to relative outperformance. Economic theory, as well as abundant empirical evidence, links innovation to superior equity performance as it drives economic growth. Additionally, we expect anticompetitive behavior to be a drag on performance given the emerging consensus that consolidation in critical industries has been harmful for many Americans.

We expect firms investing in communities that historically have received relatively less investment to take advantage of increased infrastructure spending and future industrial policy, both of which are likely to disproportionately accrue to these communities.

What are the benefits of JSG?

JSG helps investors direct their savings to companies that are creating opportunities for American communities, forging a secure America, and expanding the potential for shared prosperity.

By directing investments at companies that promote and extend JSG values, we seek to support and further incentivize them and others to keep, retain, and hire workers; invest in local production; and support American communities.

Amberwave seeks to encourage companies to make JSG disclosures, similar to ESG disclosures. Companies should tell the world what they’re doing to make America a better place to live and work. Investors should reward them for doing so.

Finally, investing in our products will help ensure that your shareholder votes are used to promote JSG policies through the application of Amberwave’s innovative JSG proxy voting policies. Amberwave will use its proxy voting to advocate for policies that further JSG goals and oppose policies that hinder them.

Your savings, your say