Making a Difference
Over $2 Trillion Under Management
The investing industry 2005 data identified $2.29 trillion under professional management involved in one or more of the three primary socially responsible investment strategies.*
Assets under professional management involved in one or more of the three dynamic strategies that define socially responsible investing in the U.S. grew from $639 billion to over $2 trillion between 1995 and 2005, an increase of 249%. Nearly one in ten dollars was invested in these SRI portfolios in 2005 (9.4% of the 24.4 trillion in total assets under professional management in the U.S., according to Nelson’s Directory of Investment Managers).
*SIF 2005 Report on Socially Responsible Investing Trends in the United States
What Is Fueling the Growth?
Performance. Many academic studies plus real-world results have effectively refuted the contention that social screening hurts performance. In fact, many studies have shown that SRI can actually enhance performance in some cases.
Choice. Over 200 mutual funds are now available for socially conscious investors. This allows a broad range of choices to meet almost all investment needs and allows investors to diversify to reduce their market risk. SRI choices are offered in the full range of retirement plans, college accounts and portfolio management.
Demand for Life Values. There is a spiritual yearning on the part of a large and growing segment of the population to integrate personal values into all aspects of life, including finance and investing. Over 50 million people now identify as “Cultural Creatives” interested in supporting sustainable societies in all aspects of their lives.
Corporate Scandals. Numerous recent instances of accounting fraud and other scandals have eroded trust in company leadership. Many investors are attracted to an investment process based on research that goes deeper into corporate policies.
Environmental Crisis. Socially responsible investing has increased along with increasing public interest in alternative energy, natural foods, sustainable building, and alternative healthcare, providing new inspiration and expanded investment opportunities.
Socially conscious investors, no matter how large or small, are most satisfied with investments that reach beyond purely financial goals to address ethical concerns. Fortunately, making money and making a difference with your money has never been easier.
Working with the Social Equity Group can help you plan and implement investment strategies designed to achieve your goals. If you are interested in contacting an investment professional with expertise in integrating personal values and social priorities into investment decision making, please contact us.
A Brief History | How it Works