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| Opportunities & Exposures: Investing |
Dividends and Devotion
Timothy Smith
09/01/2004
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Not many funds
have been created specifically for the individual religious investor, and of the
few that do exist, most have a narrow family-values perspective, rather than a
broader social agenda. Fortunately, the breadth of social investment funds that
exists captures many of the societal concerns that are often the priorities for
individuals of faith.
A crucial question for both institutional and
individual investors is whether they must pay a conscience penalty in the form
of lower returns. This is not necessarily the case. These investments are
generally competitive. Whether the investor is the $12 billion United Methodist
pension board or a small Catholic order, investment committees expect, and have
received, competitive returns from managers working within investing strictures.
Individuals who invest in socially responsible mutual funds also often find
their returns are competitive with traditional investments.
According to the
Social Investment Forum, a trade organization, socially responsible investment
indices performed about as well as the S&P 500 both in 2003 and on a total
returns basis over the past 10 years. The Domini 400 Social Index gained 28.47
percent last year, while the S&P rose 28.66, according to the forum.
This
means that investors can do well as they seek to do good. Through their efforts
they find that together, faith and finance often can make a significant
difference.
 | Timothy Smith is senior vice president of Walden Asset Management, a Boston-based money management firm. |
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