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Financial success for investors who dumped holdings in coal, gas and oil

Fossil fuel-free funds outperformed conventional ones, analysis shows, Guardian, Patrick Collinson 11 Apr 15  Investors who dumped holdings in coal, oil and gas earned an average return of 1.2% more a year over last five years, data from the world’s leading stock market index reveals Investors who have dumped holdings in fossil fuel companies have outperformed those that remain invested in coal, oil and gas over the past five years according to analysis by the world’s leading stock market index company,

MSCI, which runs global indices used by more than 6,000 pension and hedge funds, found that investors who divested from fossil fuel companies would have earned an average return of 13% a year since 2010, compared to the 11.8%-a-year return earned by conventional investors.

The figures indicate that if a major charitable institution or foundation with £100m in funds had divested from fossil fuels in November 2010 they would be around £7m better off today than if they had maintained their holdings in coal, oil and gas companies.

In total, a portfolio of shares with fossil fuel companies included has grown in value by 62.2% since 2010, but this compares to the 69.9% growth of a fund without fossil fuel investments.

The data will challenge the widespread belief among asset managers that divestment hurts the financial performance of investment funds……….http://www.theguardian.com/environment/2015/apr/10/fossil-fuel-free-funds-out-performed-conventional-ones-analysis-shows

April 13, 2015 - Posted by Christina Macpherson | 2 WORLD, business and costs