Two major universities – the University of Notre Dame and the University of Pennsylvania – recently decided not to divest from fossil fuels even after being pressured by organizations and students who vocally pushed for this action. This significant decision reflects a positive trend within university and pension board members who are realizing the hidden consequences of divestment, including the potential harm the social whim can inflict upon the return on investment for the funds.  These developments are also another … Read More

In a recent Barron’s article, Lawrence Hamtil, a fourteen-year veteran of the financial services industry, examined the costs of social responsible investing (SRI). Not only does Hamtil disapprove the idea of divesting stocks from industries based on social preferences, but he points out the flawed logic of SRI because of financial history.

Today, those who are demanding divestment action be taken by universities or pension funds are basing their claims on the recent plummet of oil and gas stocks. … Read More

Since schools are back in session, interest groups have renewed their pressure on university board members to divest their funds from industries that allegedly disagree with their institutions’ values. In Colorado, the University of Denver (DU) is considering removing the school’s endowment from investments linked to oil or natural gas companies after environmental groups actively campaigned locally for divestment. During a comment submission, finance and accounting experts once again argued that divestment action would lead to unintended financial consequences … Read More

Over the past few months institutions across the globe are falling for the common financial misconception that calls itself divestment. Even one of the largest pension funds in our nation’s capital – the District of Columbia Retirement Board – caved to activists who were putting pressure on the board. Unfortunately, this unchecked burden placed on boards to divest is costing dedicated civil servants their future source of income by diminishing the pension fund’s return on investment.

In a recent Forbes… Read More