How We Do It

We Research

We employ a rigorous investment analysis of both broad economic trends and the value of individual securities. We then evaluate what role each security might play in each client's portfolio. In every case, we endeavor to create a portfolio that will meet the particular financial goals of each distinct client.

We work with two classes of assets, stocks and bonds. By pursuing a long-term strategy, we protect our clients' assets, grow their wealth, and invest in accord with their values. We construct Balanced Portfolios, that is, portfolios that contain both asset classes. Thus, every client's portfolio is designed so that the benefits derived from each minimize the drawbacks of the other.

The result is a portfolio that balances the various elements that social investors should consider

We Screen

Is screening companies for socially responsible issues so restrictive that there are no good investments? We say no. It depends on how you screen. Through screening, you can invest in companies that are doing good works and that feed money back into the economy in a good way.

With that as the starting point there are two different ways to make these investment decisions. One approach, called "positive screening", involves identifying companies engaged in activities beneficial to society. The decision to invest is made on that basis, with much less concern for financial analysis.

Our technique is characterized as "negative screening". We create these negative screens in consultation with our clients. As with "positive screening", we also only invest in socially responsible companies. However, the difference for us is that, at all times, we adhere to the discipline of investing in companies with good growth prospects and balance sheets. We avoid companies that we do not consider financially solid and reliable. If a company meets the financial criteria, then we investigate whether the company's practices and procedures comply with our clients' social values. For example, if a company does not treat its workers and the environment well, or sells products that harm society, we avoid that company's stock.

At the completion of this process, we find that many stocks across a variety of industries are candidates for investment.
Footnotes:
1. Balanced composite returns are asset-weighted, time-weighted returns for all portfolios of at least $1,000,000 in value of clients who have been clients for at least one full calendar quarter, except portfolios affected by a material margin debt position. 2. All returns represent Total Return including the reinvestment of dividends and interest. 3. Net performance is net of transaction costs and net of advisory fees. 4. Returns of Indices are extracted from 2010 Ibbotson Stocks, Bonds, Bills and Inflation (SBBI) Classic Yearbook (Morningstar Inc., Chicago, Illinois). 5. Past performance is not to be construed as a guarantee of future performance.

©2010 Social Responsibility Investment Group, Inc - all rights reserved.