Cruise line stock draws criticism of Annuity Board

Cruise line stock draws criticism of Annuity Board

The Southern Baptist Convention (SBC) Annuity Board faces another round of criticism for owning $14 million worth of stock in Carnival Cruise Lines, which hosted “the First Annual Official Gay Days Cruise” that began May 30.

The four-night Bahamas cruise, aboard Carnival’s ship Fantasy, is sponsored by Gay Days Inc. and coincides with Orlando’s Gay Days celebration June 1–7, which organizers say will attract 135,000 people to the city.

The SBC and its leaders have been outspoken opponents of gay rights.

Since 1997, the SBC has been encouraging a boycott of the Walt Disney Co. largely because of its gay-friendly policies and events like Gay Days at Disney World.

But Annuity Board officials said May 13 that Carnival’s gambling business and association with the new gay cruise are not enough to prompt the retirement agency to divest itself of the cruise line’s stock.

Gambling objections

The Annuity Board owns 329,700 shares of Carnival in its Value Index Fund and 26,400 shares in its Equity Index Fund as of Dec. 31 — together valued at $14.5 million as of May 13.

Some Southern Baptists object to the board’s holdings in companies such as Carnival because of their involvement in gambling and other questionable activities.

The cruise line advertises the world’s largest on-board gambling casino.

The Annuity Board said its screening policy for stocks prohibits investment in “any company that is publicly recognized, as determined by the Annuity Board, as being in the liquor, tobacco, gambling, pornography or abortion industries, or any company whose products, services or activities are publicly recognized as being incompatible with the moral and ethical posture of the Annuity Board.”

The Gay Days Cruise is not sponsored by Carnival, which typically does not organize such outings but only makes space available to travel agents and groups.

In March, Annuity Board President O.S. Hawkins acknowledged criticism of the agency’s Carnival holdings but said avoiding all questionable stocks is virtually impossible.

Hawkins noted Carnival receives only 3 percent of its revenue from gambling.

The May statement from the Annuity Board noted more than 300 companies in “prohibited industries” are on a list of restricted investments. “The Annuity Board has a strong moral policy,” the statement added. (ABP)