What Is Terror-Free Investing™?
The team led by Mark Langerman and Paul Seidman have a collective 40-plus years of experience in the financial services world. One thing they've learned well is the power of simple answers, even to complex questions. Feel free to call or email us today to for an in-depth consultation about TFI. The following FAQ will get you started on your quest to get education on the intersection of investment and terrorism:
What companies will I avoid by investing Terror-Free?
We employ the increasingly standard national definition for Terror-Free Investing™: We exclude companies with active, non-humanitarian ties to Iran, Syria, Sudan and North Korea, all of whom have been deemed "state sponsors of terror" by the United States Department of State.
Are companies doing business in terrorist-sponsoring nations breaking the law?
The majority of publicly traded companies that do business in terrorist-sponsoring states have legal, commercial ties to these countries and are not known to directly support terrorism. In fact, the U.S. government would not allow you to invest in any company that has a known, direct link to terrorism.
If these companies are not breaking the law or directly supporting terrorism, what is the purpose of a Terror-Free investing strategy?
Terror-Free Investing™ is not a matter of legality - it's a question of whether you want to invest in companies that do business with rogue nations that sponsor terrorism.
Terror-Free Investing™ allows investors to stand in support of the established foreign policies of the U.S. Government and help encourage policy or regime changes within countries that sponsor terror. Terror-Free Investing™ applies financial pressure to public companies to suspend or cease their business dealings with terror-sponsoring states. Hopefully, this pressure will result in positive policy changes. Also, Terror-Free Investing™ introduces an element of risk management into your portfolio by avoiding companies that risk share price damage by doing business in or with terror-sponsoring nations.
Whether a terror-free strategy is designed with personal values or risk mitigation in mind, investors have every right to invest in these firms but are choosing not to for reasons that have nothing to do with the law.
How might Terror-Free Investing™ reflect my views on terrorism and security?
For many investors, Terror-Free Investing™ allows them to register opposition to the sponsorship of terrorism or the pursuit of weapons of mass destruction by Iran, Sudan, Syria, and North Korea. Some investors pursue a terror-free strategy to register their opposition to the human rights violations that occur in these countries and, in the case of Sudan, the genocide of its people. As long as these countries continue such objectionable policies, many investors prefer not to invest in companies viewed as providing direct benefit to those governments via their business activities.
Many view Terror-Free Investing™ as a means of sending a collective message: "We do not approve of your countries' stance on terrorism, the pursuit of weapons of mass destruction and human rights. Furthermore, we will not support your dangerous ideologies with our money."
How does Terror-Free Investing™ ensure my peace of mind?
In the past, avoiding investment in public companies that do business with terrorist-sponsoring nations was nearly impossible and incredibly time consuming. Now, through Advanced Equities Asset Management (AEAM), the Empowerment Financial Group offers its clients access to Terror-Free Large Cap Select, a separately managed account strategy that filters out companies with active commercial ties to Iran, Sudan, Syria and North Korea.
This strategy relies on rigorous forensic accounting analysis performed by the Conflict Securities Advisory Group (CSAG), the Washington D.C.-based research and consulting firm generally acknowledged as "best in class" when it comes to analyzing global security risk. CSAG reviews AEAM's holdings on a quarterly basis, certifying the equity portfolio as "terror-free."
