Values-Based Company Selection
Responsible investing is, by its very nature, selective. Performance is essential, but so is alignment with values.
The Church asks us to make a conscious effort to select and manage investments in accordance with the Social Principles. We exclude investments in companies earning significant revenues from gambling or from the manufacture, sale or distribution of alcoholic beverages, tobacco-related products, pornography, weapons, or the management or operation of prison facilities. We update our screens monthly and review our performance annually, and also perform proactive, in-depth analysis. Our analysis demonstrates that screening has had little if any adverse impact on performance.
Because of this due diligence, we have established a record of selecting stocks that meet both our screening criteria and the performance goals of our investors.
4th Quarter 2011
Holdings (Acrobat PDF)
Failed/Ineligible Companies (Acrobat PDF)
Please Note: The failed/ineligible companies list is not an exhaustive list of all companies in the investment universe that are considered ineligible for investment. Rather, it is a list of companies that have been considered for investment at some point in the past but have failed one or more of Wespath screens. Please be aware that other companies not included on this list may be ineligible for purchase.
Screening Guidelines
Our screening guidelines have been formulated by Wespath to honor and uphold the Social Principles of The United Methodist Church. They are based on a thorough review of Church literature, policies and governance.
1. Investments shall not knowingly be made in any company producing, as its core business, alcoholic beverages (beer, wine or distilled liquor) or:
a. receiving 10% or more of gross revenues from selling, distributing or marketing alcoholic beverages; or
b. receiving 10% or more of gross revenues from supplying key elements for alcoholic beverage production.
2. Investments shall not knowingly be made in any company manufacturing, as its core business, cigarettes, cigars, chewing tobacco or smokeless tobacco or:
a. receiving 10% or more of gross revenues from selling, distributing or marketing tobacco-related products; or
b. receiving 10% or more of gross revenues from supplying key elements to the tobacco industry (cigarette papers, flavorings, adhesives, etc.).
3. Investments shall not knowingly be made in any company owning or managing, as its core business, casinos, racetracks or off-track betting parlors or receiving 10% or more of gross revenues from the production of goods and services related to the gaming or lottery industries.
4. Investments shall not knowingly be made in any company receiving 10% or more of gross revenues from the production, sale or distribution of products or services that are considered pornographic or meet the legal definition of "obscene" or "harmful to minors."
5. Investments shall not knowingly be made in any company:
a. receiving 10% or more of gross revenues from the manufacture, sale or distribution of antipersonnel weapons (land mines, "assault-type" automatic and semiautomatic weapons, firearms, etc.), armaments, ammunition or weapons-related systems provided for commercial and private markets (exceptions may be made for weapons and ammunition provided for sporting or law enforcement purposes); or
b. whose identifiable ratio of nuclear weapons contract awards from the U.S Department of Defense or comparable agency or department of any foreign government to gross revenues is greater than or equal to 3%.
6. Investments will not knowingly be made in any company/corporation in which 10% or more of gross revenue is derived from the management or operation of federal, state, county, or municipal correctional facilities (jails, prisons, penitentiaries, detention centers, prison camps, transfer centers).
7. Investments will not be made in corporations in which 10% or more of gross revenues are derived from a combination of the above (1-6).
8. Companies not falling into any of the above categories still may be ineligible for purchase because of reputation, public image or any specific business practices determined to be a gross violation of the Social Principles (such as human rights violations; abusive labor practices, including the exploitation of child labor; flagrant or egregious damage to the environment; and unethical business practices).
9. Emerging markets commingled equity pools are exempt from the above restrictions if specifically authorized and the aggregate exposure of companies otherwise prohibited does not exceed 10% of the value of the fund.