2010 Key Trends in Socially Responsible Investment Funds
Eurekahedge July 2010
This report presents the findings of a study conducted by Eurekahedge analysts on more than 1,000 SRIfunds. The aim of this research report is to find the aspects of the industry in 2010, such as where thefunds are investing, which sectors and asset classes and what are the different criteria being employed.Socially responsible investment schemes, SRIs for short, are funds that seek to incorporate a variety of moral and ethical principles into their investment decisions. As such, in addition to traditionalquantitative assessment of risk/return profiles, asset managers also employ increasingly sophisticatedenvironmental, social and governance (ESG) criteria to screen for potential investments. Also known asethical or socially conscious investing, the concept is not new and has been around since the 19thcentury; however, recent world events and increasing reach of information and spread of ideas havegarnered greater attention for this sector.While the origins of social investing lie in negative screening based on religious concepts, the categorieswithin SRI¶s have expanded rapidly over the last 50 years to encompass various ideological and politicalsentiments. Currently, the most widespread criteria employed by SRI funds include environmentalrecord, human rights and corporate governance. For a more detailed discussion on the history, evolutionand concepts of socially responsible investments in different parts of the world, please refer to thevarious articles
on the Eurekahedge website.
Changes in the Number of Funds and Assets under Management
Figure 1 shows percentage changes in the number of funds and industry assets over the last threeyears.
Figure 1: Percentage Growth in SRI Funds
Through the 2008-2009 period, SRI funds«
Socially Responsible Investing Trends in the US
SRI in Europe and the UK;SRI in Canada
Islamic Finance and SRI: Any Crossover?