Can You Conquer Investing With a Conscience?

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Once regarded as something of a fringe strategy, socially responsible investing, or SRI, has grown respectable. The movement has brought a sense of purpose or higher calling to the investing table, along with the results that matter to investors — strong, solid returns.

Naysayers have charged that limiting portfolio diversity would automatically lead to poor returns. As it turns out, so-called environmental, social and governance, or ESG, screens often lead to better portfolio performance than conventional investment-picking strategies alone.

Investing Screens Go to Work

The investment-picking process is essentially identical to conventional managers, but there is an extra step. After the usual quantitative process of researching a company’s financial profile, there will be a qualitative analysis.

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