Socially responsible investment funds outperformed their benchmarks in almost all asset classes last year, as investors look for companies that align with their values and also provide good returns.
The Social Investment Forum released its analysis last week of 160 socially responsible mutual funds from 22 members of the forum, revealing that 65% of the funds in all asset classes, including balanced, large-cap, small-cap and global funds, as well as bonds, outperformed their benchmarks by significant margins last year. The data SIF used for its analysis was provided by Thomson Reuters. SIF’s mutual fund performance chart shows that more than half of SIF member mutual funds consider the executive pay practices at companies when developing their portfolios. More than two-thirds look for companies with good records on climate change issues and community development. And, virtually all exclude tobacco companies altogether from their portfolios or restrict their involvement in such firms.
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