Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Securities Law
Social Investing And The Law Of Trusts, John H. Langbein, Richard A. Posner
Social Investing And The Law Of Trusts, John H. Langbein, Richard A. Posner
Michigan Law Review
In Part I, after presenting a brief primer on the economics of securities markets, we analyze the economic and policy issues presented by social investing. We conclude that the usual forms of social investing involve a combination of reduced diversification and higher administrative costs not offset by net consumption gains to the investment beneficiaries. Social investing may therefore be economically unsound even though there is no reason to expect a portfolio constructed in accordance with the usual principles of social investment to yield a below-average rate of return - provided that administrative costs are ignored.
Part II relates our policy …