For the investors who care about creating a socially responsible portfolio, one key resource allows them to put their money in businesses with shared politics.
The Workplace Equality Portfolio, and its associated index, includes publicly traded companies that support the LGBT community. To be included in the index, companies must score a perfect 100 on the Human Rights Campaign Corporate Equality Index or, if not featured on that index, must pass through various screenings demonstrating they have in place responsible corporate practices that would earn them such a score.
The founder of the portfolio told Windy City Times that the goal of the enterprise centers on giving investors an opportunity to grow their funds within companies whose corporate practices support LGBT equality.
"What we're trying to do is give people a way to invest in alignment with their values. I want to reward companies that have the right policies in place. I don't want to reward companies who don't treat all their employees with dignity and respect, and I have a way to do that now," said John Roberts, who also manages the portfolio for the Workplace Equality Index.
The portfolio itself was launched 13 years ago by Denver Investments, an asset management firm with expertise in administering portfolios for investors opting for companies that support the LGBT community.
The firm has amassed more than 150 member companies into the Workplace Equality Index, which boasts a list of heavy-hitting business from a wide swathe of industries, including names such as Barnes & Noble, Citigroup, Coca Cola and General Motors.
But it really doesn't matter how large a company is or how well its stock performs. If they're not about equality, the portfolio's managers say, then they are simply excluded from the list.
"I think every action we take as consumers, investors and savers sends a message. If I buy a mutual fund with ExxonMobil as its largest holding, I'm supporting that company," Roberts said. "I'd rather not support their Draconian policies. I'd rather funnel my money to an investment vehicle that has workplace [equality]."
As part of the screening process, the Workplace Equality Index mandates that all member companies include language in their equal employment opportunity statement that indicates sexual orientation and gender identity are protected categories. In addition, member corporations must offer health benefits to same-sex spouses or partners of employees, in addition to other corporate benefits and benefits afforded to their heterosexual counterparts.
Various additional screens work to filter out companies whose ethics and policies would otherwise conflict with the principles established for and followed by members of the Workplace Equality Index, but corporate financial health remains a dominant factor in the process also.
If a company were to enter bankruptcy, reorganization or any other drastic institutional change that could alter the organizations' financial future, administrators of the Workplace Equality Index screen such companies accordingly. The members' stocks are equal-weighted, typically with a market capitalization larger than approximately $250 million, with rebalancing done at the end of each quarter.
Companies are added or deleted from the index in alignment with both financial and ethical health indicators established by the founders and administrators of the Workplace Equality Index.
As for would-be investors who wish to opt into the portfolio? One need not be a high net-worth investor or a large foundation in order to participate, as of February 2014. Now, virtually anyone or any organization wishing to invest can consult their financial adviser and purchase shares in the EQLT fund, via eqltfund.com, Roberts said.
"We wanted this to be accessible to everybody."