Question from a reader: Recently I’ve read reports that the both the California and Chicago teachers pension funds are either reviewing or selling investments in guns. What do you make of it?
The trustees in these cases are walking a fine line. If they decide to divest of all gun manufacturers, they are eliminating a market sector, and research shows that hurts investment returns.
Divesting in entire market sectors was the approach back with the socially responsible investment (SRI) movement started. Funds that follow the strategy are called “Excluders” because they are excluding investments based on their market sector.
The …Read More