Socially responsible investing, or SRI, has become increasingly popular over the last decade. More and more mainstream money managers are incorporating social and environmental factors into their investment decisions in response to the demands of investors who want to own companies that share their values.
From 2012 to 2014, for example, SRI assets increased 76%, according to the US SIF Foundation. The total of SRI assets at the start of 2014 was $6.57 trillion. These assets now account for more than $1 out of every $6 under professional management in the U.S.*
While more and more investors are asking for socially responsible investing solutions, many advisors may be overlooking this opportunity. A recent survey indicated only about 49% of advisors offer SRI as an option.**
Advisors may think the investor has to sacrifice performance to accommodate SRI, but studies show that doesn’t have to be the case. A 2011 study by GMI Ratings found that “on...