Socially and environmentally responsible mutual funds continued to earn top marks in the third quarter of 2002, despite ongoing market turmoil, according to data released today by the nonprofit Social Investment Forum. For the third quarter of the year, 12 of the 18 screened funds (67 percent) tracked by the Social Investment Forum with $100 million or more in assets received top marks for performance from either or both Morningstar and Lipper for the one- or three-year periods ended September 30, 2002.
Of the broader universe of 51 socially screened funds with a three-year performance record tracked by the Social Investment Forum, nearly 60 percent (29 funds) earned top marks from either or both Lipper and Morningstar through the third quarter of 2002. According to the Forum, 23 of the funds (or 45 percent) received an "A" or "B" ranking from Lipper based on one- and/or three-year total returns within their investment categories. A total of 18 screened funds garnered either four- or five-stars from Morningstar for three-year risk-adjusted performance. (The Lipper and Morningstar totals add up to more than 29 since a number of the funds earned top rankings from both organizations).
How do the SRI funds stack up to all other funds as a group?
More than a third (35 percent) of the socially responsible mutual funds (18 out of 51) tracked by the Forum earned either four or five stars, compared with 32.5 percent of all mutual funds tracked by Morningstar.