Election Results - Democrats achieved significant victories in key races across New York, New Jersey, and Virginia, with self-described democratic socialist Zohran Mamdani projected to become the next mayor of New York City, defeating former Governor Andrew Cuomo [2][4] - In New Jersey, Democrat Mikie Sherrill is projected to become the next governor, marking a critical moment for the GOP, which had made inroads in the state in 2024 [3] - Abigail Spanberger is projected to become the first female governor of Virginia, alongside Democratic nominee Jay Jones winning the attorney general race, despite not being the favorite [4] Corporate Earnings - McDonald's reported third-quarter revenue of $7.08 billion, a 3% increase year-over-year, but slightly below analysts' expectations of $7.1 billion [5] - Despite missing expectations, McDonald's shares rose approximately 1%, with same-store sales growing 3.6% globally and 2.4% in the U.S., indicating sustainable growth in a challenging environment [6] Layoffs and Employment Trends - A wave of layoffs is affecting major corporations, including IBM, Amazon, and Meta, raising concerns about the impact of AI on employment [7][8] - Job openings have reached their lowest level in over four years, with Indeed's Job Posting Index falling to 101.9 in October, the lowest since February 2021 [9] K-Pop Industry Impact - Netflix's "KPop Demon Hunters" has generated $10 billion for the K-pop music industry, significantly boosting shares of major K-pop companies like HYBE and JYP Entertainment, which have seen double-digit gains this year [11] - The film's popularity may also lead to increased consumption of Korean cosmetics and foods, with potential political ramifications in China [12]

Investment Rating - The report maintains a bullish outlook on stocks related to Reliability of Power/Water/Energy, Efficiency of Energy/Resources/Land, and solutions for Aging Populations/labor strains [1][15][38] Core Insights - Sustainable funds with broader APAC regional mandates have outperformed non-ESG peers for six consecutive quarters, while those with individual country mandates have struggled [1][35] - Performance is deemed more critical than policy for the growth of Sustainable Investing's AUM penetration, with a focus on quality and governance [1][13] - The report highlights a notable increase in AUM penetration for ANZ-focused Sustainable funds, reaching 4.8% by 1Q25, up 23 basis points year-over-year [12] APAC Fund Performance and Flows - APAC-focused Sustainable equity AUM remained flat at US$212 billion, with minor outflows of -US$0.9 billion in 1Q25, primarily from Japan and Emerging Markets-focused funds [9][19] - Passive Sustainable strategies now represent 52% of total APAC-focused Sustainable AUM, attracting US$1.0 billion of inflows in 1Q25 [9][19] - Sustainable funds in the top two quintiles based on 3-year risk-adjusted returns saw cumulative inflows of +US$6.0 billion in 2024, contrasting with -US$16 billion outflows in the bottom cohort [10][12] Stock Ideas - New entrants into the E&S Leaders screen include companies like JYP Entertainment, Kweichow Moutai, and Tata Consultancy, all rated as Buy by Goldman Sachs [6][7] - Thematic stock in focus includes Harmonic Drive Systems, which aligns with Green Capex and Aging Populations Solutions themes [6] Sustainable Fund Trends - The report notes that the median performance of APAC-focused Sustainable funds was at the 45th percentile in 1Q25, indicating underperformance relative to peers [35][42] - Greater China-focused Sustainable funds have shown significant impact on median performance, comprising approximately 50% of the funds tracked [36][44] - The report emphasizes a less-is-more approach to Sustainable integration strategies, focusing on measurable metrics [38]