SRI Funds Match Performance

The front page article in the FTfm this week was titled 'SRI funds not outperforming', and it discussed how claims of socially responsible investments (SRI) funds delivering outperformannce are not true. I believe however this article reinforces the value of investing in SRI, as Edhec research discovered that there was almost no significant difference between the performance of SRI funds and mainstream equity funds. It goes on to discuss that there could be a positive effect from SRI selection over the long term but it is not in the figures. It is obviously a insurmountable task to quantify the value added in investing in companies that will help preserve our environment and make a positive impact on peoples lives, but I believe when given the choice between SRI funds and mainstream equity funds offering the same performance the choice should be obvious.

The DJ Sustainability Index was constructed by Sustainable Asset Management (SAM) in cooperation with Dow Jones Indexes and STOXX launched in 1999. More information on how the index is designed and updated performance figures can be seen here.