Posted on 03/23/2005 6:53:20 PM PST by SmithL
SEATTLE - A mutual fund company that invests only in businesses it deems socially responsible has dropped Starbucks Corp., citing the coffee giant's launch of a java liqueur with whiskey maker Jim Beam.
Pax World Funds, a Portsmouth, N.H.-based fund family, steers clear of companies involved in defense or weapons, tobacco, liquor or gambling. It sold 375,000 shares of Starbucks worth an estimated $23.4 million, about 1.6 percent of its Pax World Balanced Fund portfolio, the fund said in a statement released Wednesday.
"While we continue to admire and respect many aspects of Starbucks' business and corporate citizenship activities, the company essentially forced our hand in this matter," said Anita Green, Pax World Funds' vice president of social research.
In a written response to the Pax World announcement, Starbucks said it was disappointed but understood Pax World Funds' strict policy on not investing in companies that make money from the manufacture of liquor.
"Starbucks is committed to responsible marketing, and proud of our history of corporate responsibility," the statement said. "Prior to the introduction of this product, Starbucks worked diligently to research and understand its potential impact."
Pax World Funds said it sent Starbucks CEO Orin Smith a letter in mid-February urging the company to end its deal with Jim Beam, which was announced last year.
"We have divested ourselves of these shares reluctantly and only after trying to get the company to reconsider its course of action," Green said. "Investors in Pax World Funds expect us to do what we say we will do about avoiding companies that produce liquor."
Starbucks Coffee Liqueur is sold in restaurants, bars and stores licensed to sell liquor. It is not sold in any of the coffee chain's 9,000 stores.
In the statement it released Wednesday, Starbucks noted it is sponsoring a national program aimed at educating parents and children about the dangers of underage drinking.
Message left with Jim Beam Brands Co. and the Distilled Spirits Council of the United States were not immediately returned Wednesday.
Shares of Starbucks fell 22 cents, or 0.4 percent, Wednesday, to close at $51.44 on the Nasdaq Stock Market.
Founded in 1971, the Pax World Funds family includes holdings in companies that sell goods and services which fund managers feel improve the quality of health care, technology, housing, food, education, pollution control, utilities and leisure activities.
The funds family, including Pax World Balance Fund, the Pax World Growth Fund and Pax World High Yield Fund, has about $1.6 billion in assets under management.
That has got to be the STUPIDEST investment strategy ever known in the history of mankind. Everyone of the "investors" (and I use the term loosely) in that fund needs to be sent a copy of Atlas Shrugged, The Wealth of Nations, and Basic Economics by Thomas Sowell.
Sometimes I really think I went to sleep one night and magically woke up in Bizarro World... honestly.
What a bunch of PC weenies! LOL.
Alcohol certainly improves the quality of my leisure activities. What's Pax World Funds' problem?!
You have expressed your opinion, which is your right to do. Are any of you directly effected by this move? Do you have any oney invested in Pax? If not, you don't have a dog in the fight, so run on home now.
Wow. Touchy, are we?
Count me as someone who agrees with their decision. God bless them for standing up for what is right. PC my butt.
Thanks for the tip!!
No. I can't say that I was affected.
Lighten up, Francis.
2. I don't have to run home, I'm already there.
3. I do own Starbucks stock, as well as shares of other mutual funds who invest in Starbucks... so as a matter of fact, I did loose money (on paper) today based on this IDIOTIC investment strategy. In the long run, my investments will be fine, but I reserve the right to call the idiots who run PAX, well, IDIOTS.
4. We are here on FR for the express purpose of discussing issues such as this. Geesh...
OK, how about both... they really could use all the help they can get... lol.
FMCDH(BITS).
the FM is just reflecting what his clients want to invest in... that was the whole point of starting the PAX fund in the first place... to get the best return they can on stocks that FIT their faith/lifestyle not just stocks with the best ROE
There are a great many thing in this world that I find amusing, most of which I would never consider putting my own money into. That includes not only most of Starbuck's corporate appeasement of the looney left, but also the entire concept of the Pax fund. If you don't like my unfunded involvement in this silliness, you may either ignore me, or run home yourself. That's the glory of free expression.
:-)
hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahah..........!
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