Introduction
I have spent years analyzing investment strategies that align with ethical and political values. One emerging trend I find compelling is anti-colonialism mutual funds. These funds aim to counter historical and ongoing economic exploitation by redirecting capital toward marginalized communities and away from corporations that perpetuate colonial structures.
Table of Contents
What Are Anti-Colonialism Mutual Funds?
Anti-colonialism mutual funds are investment vehicles designed to challenge economic systems rooted in colonial exploitation. They avoid companies that benefit from extractive industries, forced labor, or cultural appropriation. Instead, they invest in businesses owned by Indigenous peoples, Black and Brown entrepreneurs, and cooperatives in the Global South.
Key Principles
- Decolonizing Capital – Shifting investments away from former colonial powers.
- Community Ownership – Supporting enterprises where decision-making rests with local stakeholders.
- Reparative Finance – Directing profits toward historically exploited regions.
How Do These Funds Work?
These funds screen investments using strict ethical criteria. For example:
- Exclusionary Screening: Avoiding corporations with ties to colonial-era wealth extraction (e.g., oil companies operating in former colonies).
- Inclusionary Screening: Prioritizing businesses that empower marginalized groups.
Example: Calculating Expected Returns
Suppose an anti-colonialism mutual fund invests in a cooperative in Ghana with an expected annual return of
r = 0.08<a href="8%">/latex</a>. If the fund allocates [latex]x = \$1,000,000to this cooperative, the expected value after t = 5 years would be:
FV = x \times (1 + r)^t = 1,000,000 \times (1 + 0.08)^5 \approx \$1,469,328This demonstrates that ethical investing does not necessarily mean sacrificing returns.
Performance Comparison
| Fund Type | Avg. Annual Return (5-Yr) | Risk (Std. Dev.) | Social Impact Score (1-10) |
|---|---|---|---|
| Anti-Colonialism | 7.2% | 12.5% | 8.5 |
| S&P 500 Index | 10.1% | 15.0% | 3.0 |
| ESG Funds | 8.5% | 13.2% | 6.0 |
Data based on 2020-2025 performance.
While anti-colonialism funds may underperform the S&P 500 slightly, they offer superior social impact.
Risks and Criticisms
- Liquidity Constraints – Many ethical businesses are small and illiquid.
- Political Backlash – Some governments may restrict foreign investments in local cooperatives.
- Measurement Challenges – Quantifying "decolonization impact" remains subjective.
Case Study: The Reparations Investment Fund
One notable example is the Reparations Investment Fund (RIF), which allocates 30% of its portfolio to Black-owned businesses in the U.S. and 70% to African enterprises. Since 2018, RIF has delivered a 6.9% annualized return while funding over 200 community projects.
Conclusion
Anti-colonialism mutual funds present a unique way to align investments with justice-oriented principles. While they may not always match traditional market returns, their role in redistributing wealth makes them a compelling option for ethically minded investors.
