"Socially Responsible" Investing

Socially responsible investing (SRI) is fine, I'm not here to pick on people who genuinely believe they can do good in this world by virtue of which stocks their mutual fund refuses to own. Whatever, it's a harmless delusion (even if it has very little real-world impact and is probably a higher-fee scam in disguise in many cases).

Save the world ... and earn a competitive return. Learn the power of social impact investing. By Elisa Birnbaum What do animal manure, food waste and your portfolio have in common? How about a unique investment opportunity in a growing field of interest?

One of the continuing perceptions held by many financial advisors and investors is that responsible investment (RI) funds under-perform compared to non-RI funds. The RIA has done an in-depth analysis of returns for RI funds in Canada and found a strong industry with outperforming funds in every major fund category.

Karim Harji is a co-founder and partner at Purpose Capital, where he advises investors, foundations, and financial institutions globally on how to align their investment strategies with their social impact objectives. Karim leads the firm's research practice, which helps investors and their advisors to understand the key trends, issues, and opportunities around impact investing.

Most discussions about socially responsible investing (SRI) seem to revolve around stocks. If you're an index investor with an interest in SRI, there are a number of ETFs that screen companies according to their environmental, social and governance report cards. But what's an SRI investor to do when it comes to fixed income?

Last week I shared my interview with Timothy Nash, president of Strategic Sustainable Investments, the blogger behind The Sustainable Economist, and an expert in socially responsible investing (SRI). This week I'd like to profile a number of investment products that may be appropriate for Couch Potato investors who are interested in SRI.

In my latest MoneySense column, I explored whether socially responsible investing is compatible with the Couch Potato strategy. If you're not familiar with SRI, it's about finding investments compatible with your ethics, which often means avoiding so-called sin stocks and companies with poor environmental records.

Here's part two of my conversation with Timothy Nash, president of Strategic Sustainable Investments and the blogger behind The Sustainable Economist. (Part one is available here.) Next week I'll go into more detail about specific investment products that combine passive investing with SRI principles.