Do good, feel good and make money

One of the more controversial parts of our new ethical LIC is the ability to short sell the negatively screened stocks. We are very comfortable about this. Consider this fact: If you take all the “proven and probable” oil, gas and coal reserves in the world and burnt them, estimates are that we will see 5 degrees of warming. To keep it to less than 2 degrees, only 20% can be burnt. Which means there can only be two scenarios: the world stands by and destroys itself, or more likely, society acts to stop it. If the latter happens it means these stocks aren’t worth, at the aggregate, what they are valued at. So our investors should be able to profit from being right. It’s called capitalism. And that’s why it’s no coincidence that Saudi Arabia is selling down their oil company – they can see the same thing we can… 

Get more information on the Morphic Ethical Equities Fund here.