TITLE

Helping Clients Select SRI Mutual Funds and Firms

AUTHOR(S)
Chieffe, Natalie; Lahey, Karen Eilers
PUB. DATE
February 2009
SOURCE
Journal of Financial Planning;Feb2009, Vol. 22 Issue 2, p60
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
• This study examines research on socially responsible investing mutual funds that includes definitions, strategies, and performance as a background for understanding the concept and its investment applications. The definition of SRI is a function of the individual's or funds' viewpoint and the specific criteria they are willing to adopt. There is no generally accepted definition. • Major strategies for SRI are screening of stocks, shareholder advocacy, and community investing. • Advisors can choose from four different SRI indexes for use as benchmarks, but the indexes overlap significantly in the firms included in the indexes, so advisors must choose carefully. • Most previous studies have found no statistically significant difference between the risk-adjusted returns of SRI mutual funds when compared with the returns of conventional funds, and our results support this finding. SRI investors are not sacrificing returns. • The average annual return for the 78 SRI funds selected for this study is 4.8 percent, while the return on the S&P 500 is 2.95 percent and the return on the Domini Social 400 Index is 2.0 percent. For the sample period of 2001 to 2006, the risk-adjusted return (RAR) on the mutual funds is 37.3 percent, the S&P 500 is 21.2 percent, and the Domini Social 400 Index is 14.0 percent. • We report the overall returns for 11 individual screens used to identify specific types of socially responsible investing. Financial planners can determine which kinds may be most appropriate for their clients based on the specific criteria discussed and the results provided in this study.
ACCESSION #
36617281

 

Related Articles

  • Analyzing Separately Managed Accounts. Riepe, Mark W. // Journal of Financial Planning;Nov2011, Vol. 24 Issue 11, p30 

    The article offers information on the mutual funds and how investors opted to use the several forms of delegated money management. It mentions that the amount of dollars invested in mutual funds is same as those in separately managed accounts (SMAs). It notes that in mutual fund framework, the...

  • Topsy-Turvy Times for Funds. Wang, Penelope // Money;Jun2009, Vol. 38 Issue 6, p48 

    The article discusses financial difficulties that have been experienced by mutual funds from October 2007 through May 2009. Decreases that have occurred in the value of mutual funds during this time period are mentioned. The author states that the decline in the stock market has impacted the...

  • Investors aren't getting what they pay for.  // Medical Economics;7/9/2004, Vol. 81 Issue 13, p16 

    Reports that mutual funds which charge marketing and distribution fees grow faster than other funds, but shareholders are not getting any of the benefits. Observation that plans which levy 12b-1 fees have higher average expense ratios than those that do not; Indication that more than 60 percent...

  • When clients take a moral stance in investing. Reich-Hale, David // Long Island Business News (7/1993 to 5/2009);7/9/2004, Vol. 51 Issue 29, p3B 

    Presents the comments of financial advisers on the investment preferences of their clients in the United States. Refusal of an investor to buy stocks in a company with poor environmental record; Policy of mutual fund companies not to invest in socially irresponsible firms; Decrease of investment...

  • A comparative performance of conventional and Islamic unit trusts: Market timing and persistence evidence. Alam, Nafis; Tang, Kin Boon; Rajjaque, Mohammad Shadique // Journal of Financial Services Marketing;Dec2013, Vol. 18 Issue 4, p316 

    It is expected that the returns and resistance of Islamic mutual funds will be different from conventional mutual funds as the former have limited choices for portfolio diversification. This article analyses the performance of conventional and Islamic unit trusts for the period February 1995 to...

  • Millionaire Investors More Concerned with Returns than Social Responsibility.  // Spectrem High Net Worth Advisor Insights;May2013, Vol. 9 Issue 5, p3 

    The article focuses on investment returns, which is the main concern of millionaires rather than social responsibility according to the 2013 Millionaire Investor Changing Investor Attitudes and Behaviors study by Spectrem Group Inc. It says that investors puts more attention on investment risks,...

  • Are green funds true to their colors? Gunther, Marc // Fortune;2/7/2005, Vol. 151 Issue 3, p106 

    Examines whether socially responsible mutual funds live up to their name. How the Sierra Club Stock Fund, a mutual fund that promises to invest for sustainable growth, does not own shares in a single company that promotes alternative energy or reports publicly on environmental practices;...

  • Are green funds true to their colors? Gunther, Marc // Fortune International (Europe);2/7/2005, Vol. 151 Issue 2, p80 

    Examines whether socially responsible mutual funds live up to their name. How the Sierra Club Stock Fund, a mutual fund that promises to invest for sustainable growth, does not own shares in a single company that promotes alternative energy or reports publicly on environmental practices;...

  • STAT.  // Journal of Financial Planning;Jan2000, Vol. 13 Issue 1, p26 

    This article presents statistical data related to the financial planning sector in the United States. According to the data, there is 447% increase in the number of taxpayers who paid the alternative minimum tax in 1997 as compared with those who paid it in 1990. 80% of current retiree...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics