Working Papers

Socially Irresponsible Investing

Chris Dillow points to the Vice Fund, which has achieved an 18% annual average return since inception, with its portfolio of alcohol, tobacco, gaming and defence stocks.  Dillow attributes this outperformance to the defensive nature of these stocks.  A ‘vice’-oriented fund could conceivably also help investors to achieve diversification, and thereby enhance returns to a wider portfolio, by offsetting the trend in the broader wealth management industry to ‘socially responsible investing’ and the politicisation of both private and public sector investment mandates.

posted on 22 January 2007 by skirchner in Economics, Financial Markets

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