A quick glance at today’s headlines shows why we believe savvy investors should avoid holding stocks in their portfolio from companies that do business with countries like Iran, North Korea, Syria and Sudan
Houston, TX (PRWEB) April 26, 2012
Ascendant Advisors LLC said Tuesday that recent international events highlight the importance and relevance of its recently launched Patriot Fund. The Patriot Fund is a large-cap equity fund that limits investment in terror-related securities for individual investors concerned about the moral and financial risks of investing in companies that do business with nations on the U.S. State Department’s “State Sponsors of Terror” list.
“A quick glance at today’s headlines shows why we believe savvy investors should avoid holding stocks in their portfolio from companies that do business with countries like Iran, North Korea, Syria and Sudan,” says Paul Wigdor, Managing Director of Ascendant Funds, “Even beyond the moral issues raised by investments that might put dollars in the pockets of terrorists, investments in these nations are at increased risk due to instability, nationalization and other policy change by fiat as well as sanctions, asset freezes and other actions by the international community. Ascendant created the Patriot Fund to give individual investors a patriotically and financially sound alternative.”
Among the current events cited by Ascendant are the escalating conflict between Sudan and South Sudan, the collapsing cease-fire between government and opposition forces in Syria and Iran’s ongoing nuclear weapons program (citations provided for all events at bottom).
Currently, 33 companies in the S&P 500, representing more than $1.4 trillion of market capitalization, as well as hundreds of other publicly traded companies around the world do business with nations on the U.S. State Department’s “State Sponsors of Terror” list. Terror-free investing has emerged as means to help investors avoid these infected stocks.
Terror-free investing has already proven its viability in the public sector. Many public sector funds have adopted a terror-free policy—compelling the divesture of companies operating in these nations. 38 state legislatures have passed or are considering legislation prohibiting investment in terror-infected securities. The Patriot Fund allows individual investors to pursue a similar divestment in their own portfolios.
Using resources available primarily to large institutions, the Patriot Fund utilizes propriety models to screen out companies conducting business with these nations.
Beyond issues of patriotism and morality, Ascendant sees tangible financial benefits to terror-free investing. Regimes on the “State Sponsors of Terror” list are prone to instability and drastic policy changes by fiat, potentially creating a high-risk and unpredictable investment climate. Investments in these rogue states may be vulnerable to sudden and significant loss of value as a result of sanctions, asset freezes or other actions by the international community.
Using quantitative methods built on decades of investment research, the Patriot Fund removes and replaces tainted stocks with terror-free equivalents, allowing investors to continue to enjoy the potential for competitive returns with their core large cap holdings.
“The recent decision by Proctor & Gamble and Porsche to pull their business out of Iran shows that some companies are becoming aware of the risks that doing business with these nations poses to their corporate citizenship and bottom line,” says Mark Langerman, Managing Director of the Patriot Fund. “We applaud these companies and hope to share similar news on others in the future.”
About Ascendant Advisors LLC: Founded in 1970, Ascendant is one of the oldest independent registered investment advisers in Texas, providing active portfolio management to individuals and institutions. The firm offers clients decades of proprietary investment research, a disciplined and proven quantitative process, a conflict-free and client-aligned structure and a low and transparent overall cost structure.
Ascendant is also the investment adviser to the Ascendant Funds, emphasizing a performance-oriented approach that features active portfolio management with a quantitative approach to investment research. Ascendant’s Investment Committee averages more than 25 years of experience.
Additional information about the Patriot Fund and Ascendant Advisors LLC can be found by visiting the websites http://www.ascendantadvisors.com and http://www.patriotfund.com or through the contact information provided at the top of this release.
Sudan/South Sudan Conflict
- Miami Herald: http://www.miamiherald.com/2012/04/16/2752642/amid-a-trail-of-corpses-little.html
- Voice of America: http://www.voanews.com/english/news/africa/Sudan-At-War-With-Neighbor-Says-Ruling-Party-Official--147678495.html
Faltering Cease-Fire in Syria
- Wall Street Journal: http://online.wsj.com/article/SB10001424052702304432704577347183764040566.html?mod=googlenews_wsj
- L.A. Times: http://latimesblogs.latimes.com/world_now/2012/04/syria-slips-back-into-violence-as-un-monitors-go-to-work.html
Iran’s Ongoing Nuclear Program:
- Reuters: http://www.reuters.com/article/2012/04/16/us-usa-iran-congress-idUSBRE83F18320120416
- Voice of America: http://blogs.voanews.com/breaking-news/2012/04/16/clinton-burden-on-iran-to-show-seriousness-in-nuclear-talks/
Porsche, Hyundai pull out of Iran
- Fox News: http://www.foxnews.com/leisure/2012/04/16/bowing-to-pressure-porsche-joins-hyundai-in-ending-business-with-iran/
Mutual Funds involve risk including the possible loss of principal. There is no assurance that the fund will achieve its investment objectives. The Fund’s adviser has limited experience managing a mutual fund. Because the adviser screens out Terror Nations-related issuers, this will reduce the number of potential investments available to the Fund and the Fund may not perform as well as unrestricted funds.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Ascendant Patriot Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at http://www.ascendantfunds.com or by calling 855-527-2363. The prospectus should be read carefully before investing. The Ascendant Patriot Fund is distributed by Northern Lights Distributors, LLC, member FINRA.
Contact: Paul Wigdor
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