I searched the forum and couldn’t find any prior discussions on this topic this year. Anyone work or has worked for an SRI fund or investment company? I am curious how a career in this area contrasts with working for traditional unrestricted funds. Is it more/less competitive, interesting, challenging, etc? I know only some basic information about this from my previous job (we had a few SRI options to offer clients) and from the CFA level 3 curriculum. Seems like an interesting field and possibly a growth area. Anyone have any thoughts on the subject or read any good books/articles related to it?
My firm has done some work in this area, basically managing an account by a set of restrictions placed upon us by the client. The problem I have with this is that everyone’s definition of socially responsible is different. If you keep layering on the restrictions to satisfy each person’s definition then you end up with a pretty limited number of choices. It’s tough to be all things to all people, which makes socially responsible investing very challenging. Try coming up with a list of investments that you think represent social responsibility. Then try and see if these people would invest with you: Muslims (no pork, interest income, gambling, porn or booze) Al Gore (no oil, coal, timber, or “smokestack” industrials) Antiglobalization (no big-box retailers or transportation-related names like Wal-Mart or UPS) That’s just three sets of restrictions. Due to time constraints, I haven’t included vegans, the religious right, or any of the other number of groups whose concerns you may have to satisfy. My 2 cents is if someone wants to be socially responsible it is easier to do it with their spending than their investing. Let your investment advisor make as much money as they can for you however they want and then spend that money buying carbon offsets and supporting whatever causes you choose.
I think SRI is starting to gain more and more traction, especially with Churches and the like. It’s going to be the same as any othe firm, but you will just have to avoid certain industries/sectors and companies depending on the client mandates. Some have simple restrictions others have complex ones like no more than 5% of revenue from Alcohol which would exclude many restaurants. So you really can’t lump SRI funds into 1 lump and its hard to compare them as mandates are vastly different. I would say go for it, you will get experience.
someone comes to you with a “great idea” in a socially responsible business - do your research and buy for fund someone comes to you with a “great idea” in a morally bankrupt business - put it in your pa
Appreciate it.