Our Mission
Capitalist Investment Services has created Heart of Liberty Portfolios because:
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It is our duty as Financial Advisors to educate investors about the nature of their investments
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All investors should enjoy the right to have their investments managed according to their own personal beliefs, values and principles
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In the last decade, ESG Investing has come to heavily influence the decision-making process at a number of investment organizations
- Many investors , if they understood ESG Investing, would object to their money being managed in this fashion
ESG Investing
ESG stands for Environmental, Social and Governance Investing. Its adherents believe that the traditional concept of an investment manager's fiduciary duty – investment decisions should be made solely to maximize risk-adjusted return – should be significantly altered to include environmental, social and governance considerations.
Environmental - corporate climate policies and CO2 emissions, energy use, waste, pollution, natural resource conservation
Social - Diversity, Equity, Inclusion, holding suppliers to ESG standards, employee health and safety, social justice, fighting racial, gender and sexual discrimination
Governance – accurate and transparent accounting methods, putting shareholder interests before management's, integrity and diversity in selecting leadership
Many of these issues – pollution, employee safety, accurate accounting – are non-controversial and supported by many investors. However, we believe that a significant number of investors hold beliefs which do not align with the Environmental agenda of ESG. Consequently, Capitalist Investment Services has chosen to focus its educational and portfolio management resources on the “E” in ESG, which we call, for clarity's sake, Esg.
The “E” in Esg
At the core of Esg (or “sustainability” as it is frequently called) is the belief that man-made CO2 emissions will lead to a climate apocalypse, with unlivably high temperatures, inundated coastal cities, increasing severity of hurricanes and tornadoes, and drought-induced agricultural degradation that threatens to starve billions. According to those who have bought into this scenario, the only way to avert it is through “Net Zero” CO2 emissions.
There are, however, many experts who do not believe in this coming man-made climate catastrophe, and who think that “Net Zero” will:
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Effectively eliminate gasoline powered vehicles, thereby drastically reducing American’s mobility
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Lower living standards worldwide, disproportionately harming the poor and middle class
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Degrade the environment via the mining of the minerals necessary for batteries, solar panels and wind turbines
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Cause an increasing number of electrical blackouts as the grid becomes overburdened by the charging of a vastly enlarged fleet of electric vehicles, and as sporadically reliable wind and solar attempt to replace “always on” natural gas, coal and nuclear
- Empower our geopolitical enemies like China and Russia because they will continue to fuel their economies with oil and coal while we weaken America through energy impoverishment, and because these enemies control significant portions of the minerals necessary for electric vehicles and the expanded grid needed to power them
This is only a partial list of the potential negative consequences of Esg. Learn more here.
Corrupting Fiduciary Duty
In addition to the above dangers, many investment analysts believe that this political warping of the investment process may hurt investor returns.
Historically, investment managers in advisory relationships had a fiduciary responsibility to place their clients’ risk-adjusted returns above all other considerations. We call this the “Traditional Fiduciary Approach" (TFA) to investment management. Today, the promotion of ESG has corrupted the time-tested definition of fiduciary duty to allow investment managers to consider “ESG factors” when they select investments and exercise shareholder rights.
Investors in the Dark
You may think that because you own a fund that does not label itself as “ESG” or “sustainable,” your investment management fees are not funding the Esg agenda.
In fact, Esg investing permeates many Mutual Funds and ETFs (Exchange Traded Funds) which are not labeled as such, according to Pension Politics.
How Do You Know If You Are an Unwitting ESG Investor?
Because it can be difficult to ascertain an Investment Management Organization’s involvement in Esg, we have done the research to help you determine this by focusing on five factors:
- The depth to which Esg infuses the company's investment process
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The involvement of Esg-dedicated staff
- Its published belief in the catastrophic effects of man-made climate change
- Its membership in Climate Change Initiatives
- Its Proxy Voting Record
If you would like a free evaluation of your Mutual Funds’ and ETFs’ involvement in ESG, click here.
Reclaiming Your Right to Choose – Heart of Liberty Portfolios
For those who do not believe in the principles of Esg Investing, and who want their investments managed via a “Traditional Fiduciary Approach” with minimal Esg involvement, Capitalist Investment Services has created our Heart of Liberty Portfolios.
These portfolios use Fund Management Organizations which have minimal involvement in ESG. Our portfolios are tailored to meet a variety of investment objectives and risk levels, from long-term growth to current income.
To learn more about “Heart of Liberty Portfolios” click here.