What is terror-free investing?

This describes an investment strategy that keeps money out of companies that do business with so-called 'rogue' states while still seeking to maximise returns.

Where have you heard about terror-free investing?

The concept of terror-free investing started in the US more than 10 years ago, as conscientious investors began to call for an end to investment in companies that had direct financial relationships with countries linked to terrorism.

What you need to know about terror-free investing.

Washington-based think tank The Centre for Security Policy was a major force behind the movement. Its boss Frank Gaffney Jnr claimed that a fifth of the portfolios of the largest American pension funds were in companies doing business in countries listed by the US Department of State as state sponsors of terrorism, including Iran, North Korea, Sudan, Syria and Cuba.

Terror-free investing began to get a following in the wake of 9/11, when the US Securities and Exchange Commission identified the risks associated with doing business in a country that sponsors terrorism. The idea has failed to take off though, with few private institutions offering this type of investment.