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Socially Responsible Investing Does Not Mean Lower Returns

By Amanda Steinberg Friday October 16, 2009
This post is about investing



can doBy choosing a socially responsible investment (SRI) fund, you don't have to sacrifice performance. According to Victoria Collins, PhD, CFP, a Senior Managing Director of First Foundation Advisors, "SRI funds perform as well if not better than any other funds."

Screens
The first step in seeking out an SRI option is to consider your personal "screens." There are negative screens and positive screens, and it's up to each fund how it defines its screens. Positive screens identify companies with progressive practices, such as established renewable energy programs. Negative screens exclude companies with destructive practices, such as those with poor human records or weak labor standards.

Sample List of Funds
Below is a list of SRI funds, some well known, others less so:*

  • Pax World Investments launched its first SRI fund in 1971. We were quite pleased to see that Pax also offers a Women's Equity Fund.

  • Domini Money Market Accounts are invested exclusively with ShoreBank, the nation's first and leading community development and environmental banking corporation. Corporate earnings are invested back into the environment of U.S.'s Pacific Northwest and economically distressed neighborhoods of inner city Chicago.

  • Calvert Investments offers the Calvert Global Alternative Energy Fund, with holdings such as First Solar, Inc. and Vestas Wind Systems.

  • Social(k) offers a diverse socially responsible retirement platform.

  • The CRA Qualified Investment Fund seeks to produce above-average, risk-adjusted returns while financing community, economic and environmentally sustainable initiatives.

Are you invested in a SRI fund? Leave a comment and tell us about it.

* DailyWorth.com does not endorse the quality or reliability of any of the products or services listed above. You hereby acknowledge that any reliance upon any information shall be at your sole risk.

Comments (6)add
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Written by Betsy , October 16, 2009
I am totally into Calvert's MicroPlace.com It functions like a money market - with returns from 2% to 6% - but you're lending money to women micro-entrepreneurs in the Third World. The lower the return you accept, the lower the interest rate for the borrowers. It's not 100% safe like money in the bank, but microfiinance has a repayment rate of 98%, and Calvert is very reputable.
Last year when all my stocks and mutual funds crashed, my little Microfinance investment held up!
Written by Shannon, October 16, 2009
I had never heard of SRI's before. I am so excited to know that they exist!
Written by Miranda Spencer, October 16, 2009
You forgot Portfolio 21! (www.portfolio21.com). That's where I have my IRA. They invest in alot of "green" tech and such and I believe have both positive and negative screens. When the market crashed, my fund lost 1/2 its value, but now it's about up to where I bought it three years ago (ie, it regained about 50% in less than 9 months). I feel pretty confident it will get back up there in time.
Written by Meghann, October 16, 2009
I love these ideas....Any chance that there is anything that Canadians like myself can invest in?
Written by Ron Robins, October 17, 2009
I like your thoughts concerning socially responsible investing.

I have been following SRI for about forty years and believe that when we invest in a company, or many companies in the case of a mutual fund, we share in the responsibility for the activities of those companies as well as participate in the outcomes of their corporate activities. So, anyone valuing their personal or spiritual growth has to take these things into account when investing.

Also, if everyone invests according to their personal values, then, since so many of our core values are alike — and are supportive of higher ideals — that in the long run, only companies employing these higher values will truly prosper. And there is real evidence of this now.

I advocate, teach, and write on the subject of personal values based investing -- and have a popular website that has unique information which might interest you. It includes the latest global socially responsible investing news and research. My site is at www.investingforthesoul.com

Best wishes, Ron Robins
Written by Catherine, October 20, 2009
Meghann from Canada - Investors Group has Ethical/Socially Responsible Investments, and they are a dependable group to work with. Let me know how you do.
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