The Impact of Asset Allocation on Power and Ethics

Allocating assets, whether personal or others' money, implies power and privilege, which can be leveraged for good. Choices in asset allocation influence the cost of capital and can either support freer markets or autocracies. Transparency in emerging markets regarding ownership, data reporting, and accounting standards is crucial. Companies in opaque markets may prioritize state interests over stakeholders and shareholders, potentially posing ethical concerns for investors.