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Investors are moving assets into SRI portfolios as compelling evidence mounts with each quarter that these funds can achieve competitive performances:
- SRI mutual funds tracked by Morningstar and Lipper are more likely to receive the highest rankings (4 or 5 stars from Morningstar; an "A" or "B" from Lipper) than the overall mutual fund marketplace.
- Morningstar data indicates that SRI finds have a lower expense ratio than all other funds in 50 percent of all investment categories.
- Academic studies continue to find that SRI portfolios perform similar to non-SRI funds.
- SRI mutual funds are attracting new investors, and holding onto investors, for a longer period of time than other non-SRI funds. In 2002, SRI funds saw a net in-flow of $1.5 billion, while non-SRI funds saw a net out-flow of over $10 billion.
- In the wake of corporate scandals and the Sarbanes-Oxley Act of 2002, investors are looking for mutual funds that use corporate governance as an investment criteria.
- Globally, SRI is also becoming an investment option. For example, companies in signature countries of the Kyoto Accord are moving very quickly to advance their sustainable activities.
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