Socially ResponsibleInvesting

What do investors want?

• More Returns• Less Risk

• More Environment• More Transparency• More Human Rights

What is a SRI?

Only investing in:

What is a SRI?

Only investing in:

What is a SRI?

Social Environment Ethics Governance

What is a SRI?

2000’s

Social Environmental

1960’sApartheid Ethical

1700Quakers Methodists

• Over 380 SRI ETFs• 1 out of every 9 $ is invested in

SRI• 375 alternative investment SRI

funds

Some Numbers

Making investment decisions to achieve social and environmental returns without compromising

monetary profit.

What is a SRI?

Negative Screening

• Exclude undesirable sectors

• Arms, Tobacco, Gambling, Animal testing, Alcohol

Positive Screening

• Include desirable sectors and characteristics

• Environment, Clean technology, Alternative Energy, Waste management

Best in Class

• Look for specific values in selected sectors

• Human rights, employment equality, pollution control, labor relations

Active Shareholders

• Once invested, actively participate

• Contribute to the company to make a difference

What are SRI funds’ characteristics?

Costs

• Lower commissions

• To attract investors

• Or have lower costs

Efficiency

• Diversification is not lowered

• Restricting may mean more analysis

Performance

• No significant difference

• Underperformance is not apparent

• For companies, higher SR scores mean lower cost of capital and better performance

Pros and Cons

No significant difference in diversification and performanceBetter growth in crisisPositive force for change

Unclear definitionValue may already be priced inNeed for a specialist manager