US socially-screened investments grow despite market slump
Date: 30-Nov-01
Country: USA
The Forum, a national nonprofit association that includes mutual funds, community development organizations, portfolio managers and others involved in investing according to social and environmental screens, said the growth rate was about 1.5 times that of professionally managed assets of all types.
The group's biennial report is based on data collected over the first half of the year and reflects conditions as they exist at mid-year.
A broader measure which includes community investing showed assets growing 8 percent to $2.34 trillion in 2001.
The Forum said that tobacco is the most widely-used screen. Others that are popular with social investors include weapons, human rights, employment/equality, alcohol, environmental and gambling.
The total assets include 230 U.S. mutual funds with $153 billion in assets. The level of assets was down slightly from $154 billion in 1999, reflecting the stock market decline, the group said. The number of funds was up from 168.
Assets in separate accounts managed for institutions and individuals rose by 40 percent to $1.87 trillion. The separate accounts include those managed for unions, foundations and municipal and state governments.
Although the study did not focus on investment results, spokesman Steve Schueth said it has been shown that performance does not have to be sacrificed to invest in a socially responsible manner.
"I expected social funds to take it on the chin a little bit over the last few months. However that has not been the case," he said.
He said his expectation for a somewhat negative relative performance was based on the tendency of social funds to be overweighted in technology, consumer cyclical issues, service companies and health care. But the funds are holding their own with non-social funds that have similar investment objectives, he said.
The group's full report "2001 Report on Socially Responsible Investment Trends in the United States" is available on the group's website www.socialinvest.org.
