A research brief from the Social Investment Organization
finds that the perception held by many advisors that SRI funds underperform the
market doesn’t hold up to scrutiny.
“Using the most recent performance numbers provided by
Fundata, a portrait is emerging of a strongly performing industry with
outperforming funds in every major fund category,” says SIO associate director
Ian Bragg.
For example, in the Canadian Equity fund class, the average
of SRI funds outperformed the average of all Canadian equity funds on a one,
three five and ten-year basis.
In the Canadian fixed income category, the SRI funds average
outperformed the industry average on a one, three and five-year basis and was
almost identical on a ten-year basis.
The report notes that the long-term performance of SRI funds
in some categories, such as Canadian equity balanced and global equity, must be
cautiously interpreted because the majority of these funds have not been
running long enough for five and ten year results.
“It will take some time for the long-term performance of the
SRI industry to reveal itself because of the relatively short-term track record
of most funds, but early results are encouraging.”
“Our study shows that there are more than enough leading SRI
funds to choose from with strongly performing funds in every major fund category.”
The research brief is available here.
No comments:
Post a Comment