E-newsletter of Investing for the Soul
August 30, 2007
Top ethical investing news stories for August 2007
Links may only be valid a limited time. Commentaries by Ron Robins.
Turmoil. Ethics Of Credit Market Participants A
From my perspective, the
turmoil in the financial markets revolves around
ethics. Participants in the credit and debt markets
receive massive financial incentives to create
innumerable types of new financial instruments which
totally ignore reality. As the pitiful ethics are
exposed, trust vanishes, and financial instruments
are properly ’marked to market’ rather than some
mathematicians hypothetical ’marked to model’. As
the true market prices become known, financial
markets adjust downwards to accommodate reality and
many financial institutions receive major hits to
their profits. Most ethical investors up to now have
been completely ignorant of this risk in the
financial institutions that they have invested in.
It is time now for everyone to work with their
investment advisors to determine just what are the
best ethical stocks and bonds to invest in among the
banking and brokerage concerns.
What Is The Social Responsibility
I recently came across this old article. Despite its age, the article
features the thoughts of three fascinating people, Milton Friedman
(American Nobel Laureate in Economics who unfortunately passed-away last
November), Whole Foods’ John Mackey, and Cypress Semiconductor’s T.J.
Rodgers. The advantage of using corporate social responsibility towards
social ends is deeply discussed and will interest anyone engaged in
ethical investing or who consider themselves as socially responsible
Funds Outperform Mainstream Funds For Past Three
According to the magazine Investment, Life &
Pensions, for the three years prior to July 31,
2007, ethical funds returns were 57.2% compared
to 52.39% for mainstream funds and 48.02% for the
FTSE 100. For the 12 months to July 31, 2007,
ethical funds gained 18.36%, mainstream funds 13.73%
and the FTSE 100 13.28%. Investing in ethical stocks
and bonds is certainly providing good returns for UK
Investments In The FTSE 350.
This article focuses on what its authors believe are
the best ethical investments in the London FTSE 350
index. It is a collaboration of The Observer’s
Good Companies Guide and research compiled by
Co-operative Investments. This is a helpful list for
ethical investors interested in finding UK ethical
stocks and bonds. Always get help with investing
from your investment advisor though.
European & Asian Socially Responsible
Investment (SRI) Funds Under-Perform Benchmarks, Whereas US And UK SRI
Funds Show Little Difference To Their Benchmarks.
This global study is the first of its kind. And I welcome comments from
readers on it. The basic point I gather from this work is that there are
huge differences in gains between various SRI funds and that investors
or investment advisors are not able to distinguish which funds will
outperform the others. This drives home two points I have always made:
(1) Selecting a fund, (or stocks that are good to invest in), is
ultimately dependent upon one’s clarity of consciousness and depth of
awareness. And, (2) that as global consciousness rises, the companies
with the highest ethics will tend to outperform their competitors, and
that this has yet to be tested over time. To assist with the developing
our consciousness, I encourage ethical investors to look into
Transcendental Meditation (TM). Also,
consider enrolling in our
Ethical Investing Services and
Workshops. See this study at:
Study Argues For Clean Energy.
Greenpeace International and European Renewable Energy Council (EREC)
have completed a significant study that persuasively argues for green
energy. Green investors should read this as it may help them find the
best socially responsible stocks to invest in.
Religious Investors Turning To Wall
Street With Zeal.
No longer are religious activists satisfied
with boycotts, etc., to get their message across to corporate America.
With their new found substantial financial clout, they are bringing
changes to corporations via the boardroom and Wall Street. I welcome
this approach as it is resulting in greater transparency of corporate
actions as well as showing companies the advantage of using corporate
social responsibility (CSR) policies.
Note: Articles are linked to the original source. Some sites may require registration, and may, or may not, archive stories. All links were active at the time of publication.
Disclaimer: Neither The Soul Investor nor Ron Robins make investment recommendations. Nothing in this newsletter should be interpreted as a recommendation or solicitation to buy/sell any securities or investments. The Soul Investor is a source of general information and resources for spiritual investing, ethical investing, and socially responsible investing (SRI). Investors should consider their actions thoroughly and consult their professional advisers prior to taking any investment action. The Soul Investor does not necessarily agree with the opinions expressed in articles in its newsletter or offered on the web pages to which it might be linked. Such opinions are the responsibility of the writers themselves. Furthermore, The Soul Investor does not offer or provide any warranties, representations, guarantees, implied or otherwise, as to the accuracy, legality, copyright compliance, timeliness or usefulness of the information, materials or services in this e-newsletter, or other sites, to which it might be linked.
The Soul Investor is a publication of Investing for the Soul, a registered business name in Ontario, Canada. Copyright © 2007 Ron Robins. All rights reserved.