The KLD Catholic Values 400 Index

Socially responsible investing remains an out of the mainstream practice among institutions and some investment professionals. Since 1986, however, guidance for Catholic investors has been clear. In that year the US Conference of Catholic Bishops issued a pastoral letter, Economic Justice for All, s...

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Bibliographic Details
Published inJournal of Investing Vol. 14; no. 3; p. 101
Main Authors Kurtz, Lloyd, diBartolomeo, Dan
Format Trade Publication Article
LanguageEnglish
Published London Pageant Media 01.10.2005
Subjects
Abortion
Birth control
Catholicism
Christianity
Earnings per share
Investment policy
Investments
Manufacturers
Medical research
Pharmaceutical industry
Portfolio performance
Principles
Ratios
Risk exposure
Social investing
Stem cells
Stock exchanges
Stock indexing
Studies
Values
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Summary:Socially responsible investing remains an out of the mainstream practice among institutions and some investment professionals. Since 1986, however, guidance for Catholic investors has been clear. In that year the US Conference of Catholic Bishops issued a pastoral letter, Economic Justice for All, stressing the importance of incorporating the church's teaching into economic life. The authors review the risk exposures and investment performance of the KLD Catholic Values (CV) 400 Index, a broad index of stocks meeting the criteria of many Catholic investors, which was launched in Apr 1998. The performance of excluded securities was also analyzed. Although there are differences between the screening approaches of Catholic investors and other social investment practitioners, it was found that many of the same conclusions with regard to social investing in general can be drawn. Like other social investment benchmarks, the CV 400 has a higher beta, lower market capitalization, higher valuation ratios, and higher anticipated growth than the S&P 500. Investors may accept these factor exposures or use multifactor methods to reweight the CV 400 to achieve a more style-neutral profile.
ISSN:1068-0896
2168-8613
DOI:10.3905/joi.2005.580556