If You Like Democracy, Check Your Fund

Why you need to consider where companies in your portfolio are doing business

Marco Caprotti 25 February, 2021 | 9:51AM

Red wall in Beijing China

“Democracy is the worst form of Government, except for all those other forms that have been tried from time to time,” Sir Winston Churchill once said. January’s attack in Washington, when an armed and angry mob of Trump supporters stormed Capitol Hill and clashed with police has highlighted how fragile democracy is, even in the world’s largest and most successful economy. Meanwhile, the military coup in Myanmar shows how democracy is still a swearword in many frontier countries.

Invest on the Right Side of History

If you agree (and you may not) with Churchill, you may want to know where the revenues of the companies in your portfolio are coming from. After all, an increasingly influential segment of investors want their portfolio aligned with a broader vision of prosperity that goes beyond profits. And if that segment wants more democracy in the companies it is invested in, it may want to see the degree of civil rights of the countries in which its funds are producing revenues.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Marco Caprotti

Marco Caprotti  è Giornalista di Morningstar in Italia.

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