Danish pension fund Lærernes Pension excludes itself from investing in around 9% of the global stock market on account of responsible investing.
The exclusion list covers a total of 658 companies, approaching the point of worry, says Aarhus University financing professor Peter Løchte Jørgensen to finance media Børsen Pro Finans.
”The more you exclude of the available investable market, the poorer your prospects of creating an optimal portfolio. That’s why it could end up being a problem to have a very long exclusion list,” he says.
In a written comment to Børsen Pro Finans, Lærernes Pension’s Chief Invesment Officer Morten Malle replies that the fund disagrees with this criticism, and that the exclusions are having an effect on risk-adjusted returns.
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