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Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible
investing (SRI) is increasing rapidly, but investors are still asking if
investing in an SRI strategy requires sacrificing performance or taking
on additional risk, compared to a broad market index.
In its latest white paper entitled, Socially Responsible
Investing: Delivering competitive performance (download report here), TIAA-CREF said that from 2003
to 2012, SRI assets in the U.S. grew 54% to reach $3.31tln , according
to the Forum for Sustainable and Responsible Investment (US SIF
Foundation). This represents roughly 10% of assets under professional
investment management in the U.S. as tracked by Thomson Reuters Nelson.
"SRI strategies apply various environmental, social and governance (ESG)
criteria in selecting public companies for inclusion in a portfolio. The
process of incorporating nonfinancial criteria restricts the range of
investment opportunities, potentially limiting returns. On the other
hand, companies that wisely manage ESG risks and opportunities may also
improve financial measures, potentially enhancing stock performance,"
the white paper said.
According to TIAA-CERF, many studies on the performance of SRI mutual
funds versus non-SRI ...................... To view our full article Click here
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