Do the Ten Commandments apply to our retirement savings?

The sixth commandment, "You shall not kill," seems clear enough. And the vast majority of Canadians don't. At least not directly.

But we invest in companies that do. Military technology is big business and very profitable. It should come as no surprise that investment experts consider this segment important to a balanced portfolio.

Take the Canada Pension Plan as an example. Eighteen million Canadians expect CPP to be a small, but important, part of their retirement income. At $170 billion, the CPP portfolio includes a huge number of diverse investments.

To its credit, CPP has an excellent disclosure policy. "Canadians have the right to know why, how and where we invest their Canada Pension Plan money, who makes the investment decisions, what assets are owned on their behalf, and how the investments are performing."

Philosophically, CPP is concerned about environmental, social and governance issues, and seeks to influence the companies in its portfolio. Sound good? Not so fast! Unfortunately CPP does not screen out companies based on ethical factors. If it's legal in Canada, it's okay to invest.

The Huffington Post recently described some of CPP's military-industrial investments. Like a $10 million stake in L-3 Communications Holdings Inc., the company held responsible for the Abu Ghraib prison scandal in Iraq and a manufacturer of key drone components. Or Elbit Systems Ltd., at the forefront of developing miniature drone cars. These automatic killing machines use computerized judgment to determine who the enemy is.

Before we get too judgmental about CPP and how it invests our hard earned dollars, we should take a critical look closer to home. Do we know anything about the companies that make up our portfolios? Do we scrutinize individual stocks and mutual funds before investing? Or is it "ignorance is bliss"?

Whatever our stated faith and life values are, most of us toss them out the proverbial window when we make investment decisions. Our investment advisors focus on rates of return because that's what we're concerned about.

It's easy to dismiss ethical issues in these conversations. Lack of time and expertise, and the complexity of investing, are often given as key reasons why ethical investing is so daunting. But does that mean we're off the hook? Just because most people don't care, don't think or both?

Some naysayers argue that pure and undefiled investments don't exist. In an absolute sense they are right. And companies are run by imperfect people. But does that vindicate us? Commitment to aligning our investments with our belief system will take time and dedication. Diligence is required to find investment options that meet our own ethical criteria.

So where does that leave us? If we are genuinely troubled with some of the CPP's investments, we need to voice our concerns with the board. But it shouldn't stop there. Let's examine our personal portfolios. Do our own investments reflect our values? Do they reflect God's values? Remember, it's His money we are investing!

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About the author

Henry Friesen is a chartered accountant who lives in a small town near Winnipeg, Manitoba.