Sustainable Responsible Investing Has Come a Long Way (video)

July 16, 2015

“Many of the investors I talk to these days aren’t only focused on gains,” FundX President Janet Brown explains in her latest video. “They also want to invest in a way that has a positive impact on the world.” And sustainable responsible investing, or SRI, helps them do just that.

Sustainable responsible investing (also known as socially responsible investing or impact investing) is a rapidly growing field. There are now hundreds of funds that aim to help investors align their portfolios with their principles.

Click below to watch and learn how you can get started.


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Full Transcript

I’d like to make sure you’re aware of the rapidly evolving field of impact investing.  Many of the investors I talk to these days aren’t only focused on gains.  They also want to invest in a way that has a positive impact on the world.   A recent Morgan Stanley report found that 71% of investors are interested in sustainable or responsible investing.  And this growing interest is being met with increasingly sophisticated offerings.

So, if you’re interested in having your investments reflect your values, where do you start?

We’re fund investors because we understand the value of professional management.  We value diversity and the efficiencies that noload funds and ETFs provide.  No where else can we access the talents of leading managers and research teams around the world.  Further, most of us don’t have the time or expertise to truly evaluate a company’s record on environmental, social and or corporate governance issues.

Today there are a growing number of funds doing this important work. SRI funds let us own a portfolio of  progressive companies in one fund purchase. These funds are run by experienced portfolio managers, with proactive research teams to analyze a company’s environmental record or social policies for instance.  There are now funds addressing a wide range of issues, from deforestation in the Amazon to diversity in the corporate boardroom.

SRI funds have been around for decades — the first started back in 70s — and were primarily large-cap U.S. growth portfolios. Today there are almost 500 to choose from, including value funds, small- and mid-caps, both foreign and global SRI funds.  Some funds invest in a single sector such as clean energy.  Others diversify across many different sectors.

When I tell my long-term clients about the many new choices in sustainable, responsible investing – and that their performance no longer has to suffer, most say, why not?

But as with any fund investing, the challenge is deciding which funds to own and when to move your portfolio into different funds. It requires a solid investment approach.

Our Upgrading strategy leads investors to buy strong-performing SRI funds and hold these funds only as long as they continue to do well.  I’ve been using this approach to manage SRI portfolios for nearly 20 years and I can tell you it’s come a long way.

If you’d like to learn about investing in top SRI funds, give us a call.

Thanks for watching.

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David Holdefer July 17, 2015 at 11:32 am

Do you have a list of these specific funds that you are following? Highest return to lowest return? I remember Pax World from the 1980s

noloadfundx July 24, 2015 at 11:48 am

This is something we are working on. Right now SRI funds are marked as SRI in the Underlying Portfolio column on pages 6-13.

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