In the 12 months that ended in November, several funds that consider the impact of their investments upon social welfare — including the New Alternatives Fund, the Parnassus Fixed-Income Fund and the Catholic Equity Fund I — performed in the top ranks of standard mutual funds in the same categories, according to SRI World Group.
From its inception about 18 months ago through November, KLD Research & Analytics' Global Climate 100 Index — made up of companies selected for their efforts to reduce climate change — rose 22.03%. In the same period, by comparison, the MSCI World Index, which measures general corporate performance in the U.S. and 22 other major developed nations, rose 20.73%.
"After controlling for investment style," said economists at Maastricht University in the Netherlands who studied U.S., U.K. and German mutual funds, "we find little evidence of significant differences in risk-adjusted returns between ethical and conventional funds.
Source: Times reporting