SRI managers hold their own on performance
Sociallyresponsible investment (SRI) managers have performed better over the past five years than has generally been appreciated, according to a study conducted byAMP Henderson Global Investors.
The study, which looks at the performance of SRI managers over the past five years, shows that SRI managers under-performed the ASX 200 in only one year — 2002.
“The median socially responsible investment manager has outperformed the broader benchmark S&P/ASX 200 Index over one, two, three and five years to September 2003,” the survey analysis says.
The analysis says the results point to the continued long-term competitive results of the SRI sector.
The survey says the SRI median manager generated a return of 2.3 per cent above the index in the 12 months to September 30, 2003.
“The SRI median and the ASX 200 index were also well in positive territory, delivering respective returns of 13.7 per cent and 11.4 per cent in the period,” the analysis says.
“These returns follow a tough year in 2002, when markets fell 8.78 per cent [ASX 200] and the SRI median returned negative 10.38 per cent.”
The analysis says that part of the outperformance of SRI managers in 2003 relates to SRI techniques tending to favour portfolios with growth and small-cap bias.
“So over the year to September, the smaller cap bias will have helped while the growth bias could have been fairly neutral,” it says.
AUTHOR
Mike Taylor
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