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criteria. But advocates point to
examples of SRI initiatives that
have shifted traditional notions
of investing to include a greater
emphasis on the environment
and a corporation’s impact on
society.
Factors to Consider
If you are interested in SRI, it
may be worthwhile to take the
following into account:
• Because socially re-
sponsible funds are actively
managed, their performance
will not necessarily mirror
broader market trends.
• Actively managed mu-
tual funds, including socially
responsible funds, are likely
to have higher expenses com-
pared with a passive invest-
ment.
• It is difficult to compare
socially responsible funds with
one another because, in many
instances, their criteria for
stock screening are different.
• Using a socially respon-
sible selection screen will not
necessarily rule out a large por-
tion of the investment universe.
If you are interested in SRI,
there are mutual funds whose
investment criteria correspond
to various types of SRI screens.
It is possible for investors to
screen individual securities on
their own, but this could be
very time consuming. SRI may
not be for everyone, but it pres-
ents an additional way of view-
ing the investment universe.
Source/Disclaimer:
1Source: The Forum for Sus-
tainable and Responsible
Investment, Report on Sustain-
able and Responsible Investing
Trends in the United States,
2012.
Required Attribution
Because of the possibility of
human or mechanical error
by S&P Capital IQ Financial
Communications or its sources,
neither S&P Capital IQ Finan-
cial Communications nor its
sources guarantees the accura-
cy, adequacy, completeness or
availability of any information
and is not responsible for any
errors or omissions or for the
results obtained from the use of
such information. In no event
shall S&P Capital IQ Financial
Communications be liable for
any indirect, special or conse-
quential damages in connec-
tion with subscriber’s or others’
use of the content.
© 2013 S&P Capital IQ Finan-
cial Communications. All rights
reserved.
This article is provided by the
Financial Planning Association,
a membership organization for
the financial planning com-
munity, and is brought to you
by Art Stahl, a member of the
Greater Hudson Valley Chapter
of the FPA. Art is an Invest-
ment Advisor Representative
with Calton & Associates, Inc.,
Member FINRA, SIPC, 500
Glenpointe Centre West, Te-
aneck, NJ 07766.
He can be reached by phone
at 201-836-2460 or 845-729-
7638, or by email: astahl@
calton.com
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