By choosing a socially responsible investment (SRI) fund, you don’t have to sacrifice performance. According to Victoria Collins, Ph.D., CFP, a senior managing director of First Foundation Advisors, “SRI funds perform as well if not better than any other funds.”
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 rights 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 the 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 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 an SRI fund? Leave a comment and tell us about it.
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