On February 27th, I had the opportunity to hear Leonard English, Investment Manager for the General Board of Pension and Health Benefits of the United Methodist Church, talk about the organization’s community investments through their Positive Social Purpose Investment Program (PSPI).

One point in particular jumped out at me, and that was a number: 6.5%.

The annualized performance of PSPI loans held in the organization’s Domestic Bond Fund (as of 12/31/2007) has been 6.5% since inception (07/31/1990). Which is an impressive number and in line with their benchmark performance, as well as competitive market rates of return.

(read more…)

Over the past couple of months, China’s response to expanding concerns over the safety of products manufactured there has ranged from the execution of the former head of China’s food and drug administration, to a complete disavowal of any responsibility for enforcing foreign standards.

The latter is evident in a quotation that caught my eye in an Associated Press article, “Toys just 1 danger imported from China,” published on August 18th in response to Mattel’s latest announced recall of 19 million toys manufactured in China. When the China National Light Industry Council trade group hosted a panel on toy standards, Zhang Yanfen, secretary of the panel, claimed that “the quality of Chinese-made toys with American brands should be the responsibility of the American brand owner, not the Chinese manufacturer.”

But if that is the case, why has a company like Mattel, a leader in its industry with respect to setting and overseeing health, safety and environmental standards, been forced to recall millions of children’s toys due to lead paint and other safety issues?

(read more…)