Investors' desire to invest with their conscience, as well as their
money, is on the rise, according to a new report.
The report states that socially
responsible investment assets rose more than 258% between 1995 and
2005, increasing from $639 billion to $2.29 trillion.
By comparison, the
report notes, the broader universe of assets under professional
management increased less than 249%, going from $7 trillion to $24.4
trillion over the same period.
The report was issued by the Social Investment Forum, a socially responsible investing advocacy group.
"Over the past
decade, SRI has become a major force in the U.S. financial
marketplace," says Tim Smith, president of the Social Investment Forum
and senior vice-president at Walden Asset Management. "Socially and
environmentally screened mutual funds have experienced substantial
growth in their number and diversity of products as well as the social
issues they consider. Mainstream money managers are increasingly
incorporating social, environmental and governance factors into their
investing."
According to the
report, the $2.29 trillion in total assets under management using one
or more of the three core socially responsible investing
strategies-screening, shareholder advocacy, and community investing-is
up from a total of $2.16 trillion in 2003.
Between 2003 and
2005, according to the report, there was an 18.5% increase in assets
invested in SRI mutual funds; a 16% jump in social and corporate
governance shareholder resolutions (and significantly higher levels of
support for such proxy measures), and a 40% increase in funds invested
in community investing.
The report states
that almost 10% of assets under professional management in the nation
is involved in socially responsible investing.