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Porn Is Worse Than Pollution in Ethical Investing Portfolios

Inside The National Rifle Association Foundation Annual Meeting
Photographer: Daniel Acker/Bloomberg

When portfolio managers try to run an ethical portfolio based on avoiding controversial sectors, they may find that investing in firearms, dirty energy and gambling can be more acceptable than adult entertainment.

Almost 40% of global credit funds would exclude adult entertainment when using negative screening, according to a note by UBS Group AG analysts led by Stephen Caprio. Meanwhile, less than 30% of funds would avoid fossil fuel or gambling firms when applying the same method.