Although assets in socially-responsible funds have grown from $1.185 trillion in 1997 to $2.16 trillion in 1999, socially-screened funds are under-represented in 401(k) plans, said mutual fund industry executives.

Only large corporations offer socially-responsible funds in their 401(k) plans and they usually offer only one such fund in those plans, said George Gay, CEO of First Affirmative Financial Network, a registered investment advisor in Colorado Springs, Colo. which specializes in socially-responsible funds. Smaller companies with 100 employees or less are not offering them at all, Gay said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.