Interesting comments coming from the financial planning world on how SRI is growing [WHY THE CW ON SRI IS WRONG By Geoff Lewis3,004 words 1 September 2005 Registered Rep.95Volume 29; Number 9].
Although Lewis short-dates SRI to the 1960's - a broader view points to the early 20th century Quakers or even ancient Jewish laws re. dealing with one's money, the author does identifies that "(S)ocially responsible investing ... the concept has been viewed with suspicion in most parts of the investment industry."
He identifies conventional wisdom for advisors on the SRI advice business kept away from SRI clients which were
1. Were long on political and ethical commitment, but short on investing smarts.
2. Tended not to bring in big accounts.
3. By using nonfinancial criteria to pick stocks, these investors were doomed to underperform.
4. SRI remains a tiny slice of the equities business.
5. "Few he-man wirehouse brokers have snagged a trip to Bermuda for plugging SRI funds" - I liked that reality check!
But SRI is gaining momentum as a niche business with very loyal customers and, with a growing range of SRI products - including hedge funds - and a cadre of top-flight managers in the field, it's getting harder to prove that there is a performance penalty. Just this week Wednesday CitiGroup AM was shopping their SRI team from London to SIRAN and their US clients with a presentation called "Crossing the River" with a team led by Meg Brown.
I have more on this later.
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