Tuesday, 31 March 2015

The cost of investing in virtue and punishing sin

The Vice Fund invests in businesses that are considered by many to be socially irresponsible. Recently renamed the Barrier Fund, it has assets of USD 290 million invested in “industries with significant barriers to entry, including tobacco, alcoholic beverage, gaming and defense/ aerospace industries.” The Social Index Fund tracks an index screened by social, human rights, and environmental criteria. Constituents have superiorenvironmental policies, strong hiring/promotion records for minorities and women, and a safe workplace. There are no companies involved in tobacco, alcohol, adult entertainment, firearms, gambling, nuclear power, and unfair labor practices. It has assets under managementof USD 1.5 billion ...
The Vice Fund invests in businesses that are considered by many to be socially irresponsible. Recently renamed the Barrier Fund, it has assets of USD 290 million invested in “industries with significant barriers to entry, including tobacco, alcoholic beverage, gaming and defense/ aerospace industries.” The Social Index
Fund tracks an index screened by social, human rights, and environmental criteria. Constituents have superiorenvironmental policies, strong hiring/promotion records for minorities and women, and a safe workplace. There are no companies involved in tobacco, alcohol, adult entertainment,
firearms, gambling, nuclear power, and unfair labor practices. It has assets under managementof USD 1.5 billion …
A different study comparing "sin stocks" to market returns for a variety of countries from 1970 to 2007. In most countries, sin stocks comfortably beat the market. The "sin" industries in this study included  alcohol, tobacco, "adult services," weapons, and gambling.
A different study comparing “sin stocks” to market returns for a variety of countries from 1970 to 2007. In most countries, sin stocks comfortably beat the market. The “sin” industries in this study included alcohol, tobacco, “adult services,” weapons, and gambling.
  • Invest in vice or virtue? – In most countries, sin stocks comfortably beat the market. The “sin” industries in this study included alcohol, tobacco, “adult services,” weapons, and gambling.
  • Recent warming of Pacific Ocean could be early indication of El Niño – Recent warming of the tropical Pacific Ocean has primed the Pacific for El Niño. However, history has shown El Niño does not always develop from the ocean trends currently observed. International climate models monitored by the Bureau [of Meteorology] indicate the central tropical Pacific Ocean is likely to continue to warm, with all models predicting El Niño thresholds will be reached or exceeded by mid-year.
  • No Easy, Reliable Way To Screen For Suicide, Specialists Say – Even a careful psychiatric examination of the co-pilot involved in last week’s Germanwings jetliner crash probably would not have revealed whether he intended to kill himself, researchers say. “As a field, we’re not very good at accurately predicting who is at risk for suicidal behavior,” says Matthew Nock, a psychology professor at Harvard. He says studies show that mental health professionals “perform no better than chance,” when it comes to predicting which patients will attempt suicide.
  • Greek Voters Want Their Government To Show Some Fight – The leftist Syriza party swept into office on a promise to stand up to European austerity demands. But the new government has had to soften its tone. Some Greeks worry the party is giving in.
  • Fortress of Nationalism: Russia Is Losing Its Political Morals – The murder of opposition politician Boris Nemtsov reveals that Russia has become morally unhinged. The country is transforming into a nationalist fortress and the powers that be are happy to ignore the potentially dangerous implications.
  • China’s New Normal and America’s Old Habits – China is generating a lot of confusion nowadays, both at home, where senior officials now tout the economy’s “new normal,” and abroad, exemplified by America’s embrace of Cold War-style tactics to contain China’s rise. On both counts, the disconnects are striking, adding a new dimension of risk to the impact of the “China factor” on a fragile world.
Post a Comment