It was sort of bound to happen eventually. An ethics-based investment fund has been nailed by the U.S. Securities and Exchange Commission for, you guessed it, an ethics violation.
Here's the (very good) story from Ron Lieber at the NY Times: Socially Responsible, With Egg on Its Face
When the news broke late last month, it read almost like satire. The Securities and Exchange Commission had charged a mutual fund company that specialized in socially responsible investments with taking stakes in companies involved with alcohol, gambling and military contracting. But it is a true story, and it’s the first time the S.E.C. has encountered this problem. Pax World, one of the oldest practitioners in the field of socially responsible investing, paid a $500,000 penalty.
Lieber's analysis is great; I strongly recommend reading it. But I'll add my own 2 cents' worth....At least 3 issues are worth talking about, here. First, there's the one that on the surface makes this a "juicy" story," namely the fact that it was (gasp!) a so-called "ethical fund" (or socially responsible investment fund) that the S.E.C. nailed.
Read it all here.