Are you investing like a smart Catholic?

Take the easy 9 question test and see!

Question 1: The US Council of Catholic Bishops has set out guidelines for Socially Responsible investing.

True False

Question 2: I have read the Bishops’ investment guidelines.

True False

Question 3: The Bishops’ investment guidelines only require the faithful to exclude companies that are involved in activities that are completely morally unacceptable.

True False

Question 4: Working to improve the business policies of US corporations through the use of active shareholder advocacy is expressly recommended by the Bishops.

True False

Question 5: I don’t know how to implement the Bishops’ recommendations so that my portfolio is invested in a way that is consistent with the Catholic faith.

True False

Question 6: I don’t know what companies are currently held in my investment portfolio.

True False

Question 7: I am confident that my investment portfolio is in harmony with the Bishops’ Socially Responsible Investment Guidelines.

True False

Question 8: Research conducted for the Bishops’ concluded that Socially Responsible Investing need not negatively impact investment returns.

True False

Question 9: My portfolio has outperformed or at least matched the stock market (+7.97% annual average compound return through 12/31/14) over the last 10 years.

True False

Answers

1. If you answered true, give yourself 1 point. The Bishops published the latest guidelines in 2003.

2. If you answered true, give yourself 1 point. You can’t be sure that you’re following the guidelines if you haven’t read them!

3. If you answered false, give yourself 1 point. The Bishops call for faithful investors to engage with corporate managements to improve business practices.

4. If you answered true, give yourself 1 point. Throughout the Socially Responsible Investment Guidelines there are repeated calls for active advocacy by Catholic shareholders.

5. If you answered false, give yourself 1 point. Following the Bishops’ Guidelines requires knowledge of which companies to avoid as well as a strategy to effectively influence corporate behavior.

6. If you answered false, give yourself 1 point. To avoid companies that will not abandon gravely immoral activity requires full knowledge of what you own.

7. If you answered true, give yourself 1 point. If your portfolio is clear of any holdings that the Bishops’ Guidelines indicate should be avoided, and you are engaging in an ongoing advocacy effort, congratulations.

8. If you answered true, give yourself 1 point. Research done for the Bishops, and numerous other studies as well, have concluded that there is no negative impact from limiting your investments to those that are morally acceptable. In fact, the very opposite may be true and there may be a benefit from investing in a responsible way!

9. If you answered true, give yourself 1 point. Achieving returns in excess of the market averages is a fairly rare accomplishment over an extended time frame.

Scoring

If you scored less than 8 points, your portfolio probably has one or more problems!

To learn more, contact Summit Investments!

Post from: Insights