Grow your business with Socially Responsible Investing (SRI)

Still think socially responsible investing (SRI) is only for fringe investors who care more about the environment than they do about returns? You may be surprised to discover who’s investing responsibly and just how profitable it can be for them – and you.

Between 1998 and 2000, sales of socially responsible mutual funds in Canada grew by approximately 75%, in line with growth in the U.S. and around the world. What’s more, recent market volatility hasn’t had as much impact on SRI as it has on other investments. Assets in American SRI mutual-funds grew by 3% in the first half of 2002, even though sales in the mutual-fund industry as a whole dropped by 9.5%. And with recent concerns about corporate governance, you can expect socially responsible funds to appeal to even more people.

Who’s buying all these SRI funds? Surprisingly, interest in Canada is highest in the prime age group for investing – baby boomers aged 35 to 59. They’re also more likely to be university educated and in professional or technical occupations.

These are people who want performance – and SRI delivers. In 2002, researchers from the University of Western Ontario compared the five and ten year performance of Canadian socially screened mutual funds to the TSE 300 (now the S&P/TSX Composite). They concluded that “those who engage in SRI through investing in Canadian SRI mutual funds, on average, are neither giving up anything nor gaining anything in terms of financial returns.”

Canada’s first family of SRI funds – Ethical Funds® – was included in this study. This family of 19 funds allows investors to diversify across asset classes and investment sectors. At the same time, unitholders’ values are reflected through an effective combination of social and environmental screening and positive shareholder action. Risk-adjusted performance has been competitive and the funds are now available with optional loads. As a result, Ethical Funds make it both easy and profitable for you to expand your business base and offer expertise in this growing arena.

Ethical Funds is Canada’s first family of SRI funds and leads the way in shareholder action. The company offers a choice of 19 funds for every investor profile, plus solid financial management and competitive returns. In addition, Ethical Funds are now available with optional loads. For more information, visit www.ethicalfunds.com.

®Ethical Funds & Design are registered marks owned by Ethical Funds Inc.

December 2002

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.