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Socially Responsible Investing for Idiots

Socially Responsible Investing for Idiots

Sí, Money! by Michael Grodsky

If I am to be an idiot, at least I’m an idiot green. I believe in clean air, corporate responsibility, community activism, licorice, pizza and Thai food. And healthy living, freedom, liberty, and of course raisins.

Shiny Happy raisins

I love trees, sky, and oh, the oxygen! But I’m concerned about the parlous state of the health care, education funding, the ozone hole, the Medicare donut hole, and your little dog, too! Did you know that the North Pole melts? That really scares me. Plus I need to reduce my Chunky Monkey ingestion.

In everything I do, every move I make, it seems that I am part of the worldwide network of production and consumption patterns. So I have my place pert uses recyclables in the blue bin, our family reusable shopping bag, and I agree. What can a light switch thumping, petrol pumps 21st Century fox do?

Come on baby, light my fire SRI. . .

It was only a few years ago a friend told me that real estate is the only investment that did not make sense, as if his position would be on the Ferris wheel in the investment, driven by an invincible source, forever up, built, UP! Instead, what had happened, “Up, up and away.”

The first Ferris Wheel, in 1893 Chicago World Columbian Exposition

The desire for a sure thing is hard to resist. Albert Einstein to succumb to pressure on the idea of a static universe to assist in his paper in 1917 an adjustment has been called the number “cosmological constant” into his equations of general relativity theory. In 1931 he publicly renounced this static cosmology and endorsed the Big Bang, expanding universe model, ditching the cosmological constant and the return to his original equation. Later called his bow to peer pressure the biggest mistake of his life. You can read about the adventure in author Simon Singh’s Big Bang – The Origin of the Universe “.

Many philanthropic foundations have long been a wall between their socially conscious mission statements, making the grant drive pulled and the holdings of its talent. It is a truism that invest in social benefits at lower yields. But just as a scientific peer consensus eventually embraced the Big Bang theory, it has changed the thinking of philanthropic foundations. The reasons are twofold: the recognition that corporate responsibility and societal concerns valid parts of investment decisions are (1) and a growing number of scientific studies have shown that Socially Responsible Investment (SRI) mutual funds perform competitively with non-SRI funds over time. (2)


For example, after the University of Maastricht and Erasmus University Rotterdam economists in their award-winning work, “we find little evidence for significant differences in risk-adjusted returns between ethical and conventional funds for the period 1990-2001.” (3)

Foundation investment choices seem to be always guided by impact on society as a whole, not just financial gain, according to a recent Los Angeles Times article. (4) fresh thinking in the nation’s largest foundations, the impetus driving faster and faster: the $ 8. 5-billion William and Flora Hewlett Foundation (Menlo Park), the $ 6. 1-billion John D. and Catherine T. MacArthur Foundation $ (Chicago), the seventh 8 billion-WK Kellogg Foundation (Battle Creek, Michigan) have to improve all recent changes to the social impact of their investments. (5)

SRI assets grow faster than assets as a whole for the non-profit Social Investment Forum 2005 biennial report, SRI assets increased more than 258 percent from 639 billion U.S. dollars in 1995 to $ 2. 29 trillion in the year 2005. In those ten years, SRI assets grew four percent faster than the entire universe of managed assets in the United States. (6:00)

Some have already been on the SRI Length: The nation’s second largest foundation, the Ford Foundation, along with others such as the FB Herron Foundation, the Jessie Smith Noyes Foundation and the Nathan Cummings Foundation, have focused for a long time and their charitable investment practices.

What is socially responsible investment? Socially Responsible Investing (SRI) is a broad-based approach to investing that now encompasses an estimated $ 2 3 trillion from $ 24,000,000,000,000 in the U.S. investment marketplace today. (7) The release of the United Nations Principles for Responsible Investment to some of the world’s largest institutional investors, asset managers drawn and related organizations about 9 trillion U.S. dollars in assets, the center-stresses in 2007-the broad acceptance of the principle that investors not in the long term to achieve its objectives by investing in companies that pass their costs on society. (8)

How can I research SRI funds? A good place to start is the Social Investment Forum (http://www. Social Invest. Org). See you in the resource list at the end of this article.

How do I start investing? If you can to an employer-sponsored pension plans it be SRI funds already to you. When your own IRA or other plan, check what is available. But not only the addition of a fund to go regardless of the total composition of your portfolio.

The key to earning decent long-term earnings and limit the overall risk is an appropriate asset allocation have, so you do not have all your eggs in one basket. For do-it-tion yourself, check the government website about asset allocation (http://tinyurl. Com/2825hw) or “All About Asset Allocation by Richard A. Ferri ($ 13 57 Purchase of Amazon) a great introduction to the topic. Your personal financial advisor or company where you can help your investments or retirement accounts.

How do I know what resources to produce the highest returns? You do not, you can not, and you will not forget so easily, because past performance does not predict, not of future results. The day-to-day highs and lows of the market get the attention of the media, but the daily, quarterly or annual returns are largely irrelevant on long-range development of the individual portfolios, their goals. What are you shopping for funds that perform well in the long term in their respective sectors, as compared to the benchmark indices. Different areas of the economy are always moving up and down and sideways, and so far no one has to know in a position ahead of time what the pattern is. Asset Allocation, I will say again, the key to long-term success in building a financially secure future for. Not panicking helps too!

What makes an SRI fund from others? If a prospective company established by a fund declared objectives, research is conducted to determine if it is to buy a good idea to take stock about the offer price. It runs on the question “In the guidelines of the stated objectives of the fund will help this purchase, to achieve a high return for shareholders of the Fund?”

The three core areas of the socially responsible investment screening strategies, shareholder advocacy and community investing. Screening by a fund is a company rule or by criteria such as alcohol, tobacco, animal testing and human rights, among others. These screens can be positive (ie, including companies that treat employees well) or negative (eg excluding companies that do business with impaired musicians).

Note that, as with all funds, SRI funds are no guarantee of future returns.

In any case, you’d better at this boy with raisins!

If you are driving power, car, and in many other activities of daily life in a very real sense you are already invested in the companies that enable and promote your consumption. In other words, part of the “market”, whether you actually own stocks or mutual funds. Socially responsible investing can be a way to make your work dollars on something in which you believe to support these companies and believe, have a vision in line with your own.

Resources and proposed reading

1st “The Mission in the Marketplace: How Responsible Investing Can fiduciary oversight of the Foundation to strengthen foundations and develop Philanthropic Missions.” Social Investment Forum Foundation’s Resource Guide for foundations to risk and leverage management of their assets investment more fully with their core philanthropic purposes, during the creation of lasting value. http://tinyurl. com/35t49h second “10 Best” list of companies. Corporate Responsibility Officer magazine rated the revelations citizenship, politics and performance of large cap public companies in the following sectors: Auto & Vehicles, paper, technology hardware, software, Technology, Transport and Travel & Accommodation industries, chemicals, energy – financial, media and energy industries. http://www. thecro. com/node/580 third Social Science Research Network. http://www. SSRN. com / 4 United Nations’ “The Principles for Responsible Investment. An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact. http://www. UNPRI. org / 5 to invest the Social Investment Forum, national membership association for the promotion of the concept of practice, and growth of socially and environmentally responsible. http://www. social invest. org / 6 Social Investment Forum 2005 biennial report. http://tinyurl. com/258794 7th Sristudies. org, a resource for the quantitative aspects of socially responsible investing. Contains an annotated bibliography of studies on socially responsible investing. A project of Moskowitz Research Program, the Center for Responsible Business at the Haas School of Business, University of California, Berkeley is affiliated. 8th Socially Responsible Mutual Fund Charts financial performance. http://www. social invest. org / resources / mfpc / 9 Social Funds. com, an advertising-driven site with information on SRI mutual funds, community investments, corporate research, shareholder actions and daily social investment news. 10th “Handbook on Responsible Investment across all investment classes to come.” For asset allocation Junkies, individuals and institutional investors with the Boston College Center for Corporate Citizenship created this work. http://tinyurl. com/2ffqbu


1st The maturation of the Socially Responsible Investment: A Review of Developing Link with Corporate Social Responsibility by Russell Sparkes and Christopher J. Cowton. Journal of Business Ethics, Volume 52, Number 1 / June 2004. 2nd SriStudies. org 3rd International Evidence “Ethical Mutual Fund Performance and Investment Style, paper by Rob Bauer, Kees Koedijk, Roger Otten. Limburg Institute of Financial Economics, November 2002. (Socialinvest. org / resources / research 4) Foundations align investments with their charitable purposes of Charles Piller, Los Angeles Times, December 29, 2007. Section C, p 1 5th Ibid. 6 2005 Report on Socially Responsible Investing Trends in the United States. Social Investment Forum. (www. social invest. Org) 7 Socially Facts Responsible Investing. Social Investment Forum. www social invest.. org 8th PRI Report on Progress 2007th PRI (Principles for Responsible Investment), the United Nations. (www. UNPRI. Org)

Image Credits

Bush Sun-Maid/George composite picture • First Sun-Maid packaging to a picture of Lorraine Collett as the “Sun-Maid Girl feature, 1916th Designer unknown, contains paintings by Fanny Scafford. Public domain in the United States. • talking photo of Bush. Brazil, 6 November 2005. Agência Brasil, a picture of a public Brazilian news agency produces. Published under the Creative Commons Attribution License 2nd 5 Brazil. Fox / Morrison composite picture • Foxes by Franz Marc, 1913. The Yorck Project: 10th 000 masterpieces of painting. DVD-ROM, 2002. ISBN 3936122202 Distributed by Direct Media Publishing Ltd. Public Domain. • Portrait of Jim Morrison, 2007, by Amadeu. taradell. Released by author into public domain. Ferris / Superman composite image • The first Ferris wheel of 1893 World’s Columbian Exposition, Chicago. The New York Times Photo Archive. Public Domain. • Screenshot of 1941 Superman cartoon. Fleischer Studios. This work is in the public domain, because it is published in the United States 1923-1963 with a copyright notice, and its copyright was not renewed. Musician Operation Valentine’s Day Candy composite picture • photo of musician Jeff Hawley, 2007. Manager, Marketing and Content Pro Audio Combo Division, Yamaha Corporation of America. By courtesy of Mr. Hawley. • Photo, 3 August 2005 by Mazbln. Halberstadt, Monastery Church of St. Burchardi, location of the John Cage Project “as slow as possible.” It is permissible to copy, distribute and / or modifying this document under the terms of the GNU Free Documentation License, Version 1 2 or any later version published by the Free Software Foundation. • Original paintings by Lorraine Collett of Fanny Scafford, 1915, later used on Sun-Maid raisin packaging. Public Domain in the United States.

This column aims to provide general information, and should not be considered investment advice nor any legal or tax advice to be understood. It does not guarantee the accuracy or completeness of the information in this article. There are no guarantees for future consideration for a new fund, nor an endorsement of any investment product. Investment funds will be available by prospectus. For complete information on investment funds, including sales charges and expenses, call your financial professional for a prospectus. Please read the prospectus carefully before you invest. Links are provided here for convenience, and give no guarantees as to the accuracy of the content on the linked pages.

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