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Though the team has largely fixed those flaws, Stern said, "The legacy of financial underperformance is still with the team".
(With a caveat, of course, that if you've got philosophical objections to investing in the latter two, you'll want to find a socially responsible index fund instead, and may need to make the tradeoff of a bit more volatility or slightly higher fees, or potential financial underperformance).
When it comes to financial underperformance, Dow Jones has plenty of company among firms with second-class investors.
The news comes less than two weeks after CEO John Riccitiello resigned, citing the company's financial underperformance.
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In 2012, the National Audit Office found that the government had "not sought adequate financial redress for underperformance" in drawing up a contract with Atos.
Atos had not "routinely met all the service standards specified in the contract", the report declared; its record on meeting targets was "poor"; the government had failed to seek "adequate financial redress for underperformance"; and the "management of the contract lacked sufficient rigour".
Of course, correlation isnt cause, and company-specific issues often explain financial outperformance and underperformance.
The most recent period of severe underperformance of financial stocks was in some ways the opposite of this one.
The National Audit Office criticised the Department for Work and Pensions in August for not having "sought financial redress for contractor underperformance" and recommended that it "tighten performance requirements with Atos in relation to the quality of medical assessments".
The UDA has attracted much criticism from dental practitioners who cite inequity regarding variable UDA rates and a target-focused mentality which has often resulted in anxiety resulting from the financial implications associated with contract underperformance [9,10].
A few things need to happen rather quickly – specifically, over the next several weeks and months – if the continent is to minimise the risk of slipping into another prolonged period of underperformance and additional asymmetrical downside financial risk.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com