E-newsletter of Investing for the Soul August 30, 2012
Top ethical investing news for August 2012
Links may only be valid a limited time Commentaries by Ron Robins
Twitter allows me to cover more--and breaking news--to help you do better!
Use Of Corporate Governance Ratings Demonstrates Superior Investment Returns. - [COMMENTARY] "Over the 10-year period ended July 1, 2012, a portfolio of companies with top-decile AGR ratings would have outperformed the lowest-decile portfolio by 55%... AGR reflects a broad spectrum of accounting irregularities and weaknesses in corporate governance statistically associated with an elevated risk of anomalous events likely to cause precipitous contractions in equity value."
This is most interesting. Very few ratings organizations consider only
governance-litigation risk. It's fascinating to see that by screening
for that alone investors can outperform. Ethical investing just got
Trends In ESG Integration In
Investments, Useful Report.
- [COMMENTARY] "In this report, we
assess current trends around environmental, social, and governance (ESG)
integration in mainstream investments and provide specific
recommendations for companies to attract investors with long-term
investment perspectives." This is a good overview of the present
SEC's Conflict Minerals Vote Comes Under Fire. - [COMMENTARY] "Humanitarian groups said they were disappointed with the final rule, which included a provision allowing companies to report that they couldn't determine the origin of their products. 'It’s a huge loophole that undermines the rule,' said Corinna Gilfillan, head of the U.S. office at Global Witness, of the clause. 'The SEC seems more interested in protecting the bottom line of these companies rather than helping the citizens of the Congo.'"
I agree there shouldn't be such a loophole. Many companies are likely to
choose the easy way out and say they couldn't determine where the
minerals came from. I don't know if this is the case with the rule, but
it would only be valid to me if a company using the loophole were able
to show documentation that their search as to the source of the minerals
revealed it was impossible to discover.
Hedge Fund Firms Accepting Screens
To Get Faith-Based Business.
- [COMMENTARY] "Hedge fund managers
hungry for institutional assets are increasingly willing to incorporate
exclusionary screens into their investment approaches to keep portfolios
in line with the socially responsible investment values of
church-affiliated investors." Acceptance of ethical investment
principles keeps growing.
Prestigious China Association of
Public Companies Urges Listed Companies To Issue CSR Reports.
- [COMMENTARY] "The move
would allow companies to timely release operational information, focus
on investors' returns and boost market confidence, the association said.
By the end of April, 586 companies listed on the A-share market had
released 592 corporate social responsibility reports. The figure
increased 11.49 percent compared with a year earlier. However, those
companies only accounted for 25 percent of the total A-share companies."
This is great news for ethical investors interested in Chinese
Another Study Finds SRI-Ethical
Funds Performing Positively.
- [COMMENTARY] "The empirical
results show that SRI funds outperformed conventional funds in EU and
U.S. In addition, the results of EU are among the top-performing
categories. Environmentally friendly funds do not perform as well as
SRI, but perform in manners equal or superior to conventional funds.
These results show statistically significant in some cases." This
study adds an interesting twist in its statistical analysis. Read about
it in the link below.
Australian Investors Push Companies For Impact Of ESG Issues. - [COMMENTARY] "The Australasian Investor Relations Association’s (AIRA) biannual survey of IROs finds two thirds of respondents have fielded more questions on ESG issues in the last 12 months than before. Almost three quarters also say they have received requests for more information on the ‘broader impact’ of company operations and governance."
This is the kind of push many companies need to take seriously ESG
issues. So many studies have found that companies that excel on ESG do
better financially and have relatively higher stock prices. It amazes me
how many companies still resist the benefits of an ESG focus.
Women As Directors Beat Men-Only Boards In Company Stock Return. - [COMMENTARY] "Shares of companies with a market capitalization of more than $10 billion and with women board members outperformed comparable businesses with all-male boards by 26 percent worldwide over a period of six years, according to a report by the Credit Suisse Research Institute, created in 2008 to analyze trends expected to affect global markets."
This study adds to a body of research that women are invaluable
corporate board members. There are a few ethical funds that specifically
favour investing in companies where women are significantly represented
on corporate boards. It's about time that women played a much more
pronounced role in finance. I even believe we would see fewer financial
Low Fee Socially Responsible Investing – Investing in your worldview on
your terms, by Tom Nowak, CreateSpace Independent Publishing
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. Also, Mr. Ron Robins is not an investment advisor, nor is he licensed with any professional investment related body, and thus is not able to, nor does he make, any investment recommendations.
The Soul Investor is a publication of Investing for the Soul, a registered business name in Ontario, Canada. Copyright © 2012 Ron Robins. All rights reserved.