Socially Responsible Investing Outpacing Broader Managed Assets in US
Spurred by such factors as rising institutional investor interest, growing demand for climate-related renewable energy alternatives, concerns about the Sudan humanitarian crisis, and the emergence of new products, socially responsible investing (SRI) in the US is now growing at a much faster pace than the broader universe of all investment assets under professional management, according to the new edition of the Report on Socially Responsible Investing Trends in the US published by the Social Investment Forum (SIF). The report found that, from 2005 to 2007, SRI assets increased more than 18% while all investment assets under management edged up by less than 3%. The report identifies US$2.71 trillion in total assets under management using one or more of the three core SRI strategies – screening, shareholder advocacy and community investing. In the past two years, social investing has enjoyed healthy growth from the US$2.29 trillion documented in the 2005 report. Today, nearly one out of every nine dollars under professional management in the US is involved in socially responsible investing – 11% of the US$25.1 trillion in total assets under management tracked in Nelson Information’s Directory of Investment Managers.