SOURCE: Investment Management Consultants Association

November 07, 2007 18:54 ET

IMCA Journal of Investment Consulting Publishes New Paper on Socially Responsible Investments

DENVER, CO--(Marketwire - November 7, 2007) - An article in the Summer/Fall 2007 issue of the Journal of Investment Consulting, published by the Investment Management Consultants Association (IMCA), addresses the idea that socially responsible portfolios can perform as well as conventional portfolios.

In "Socially Responsible Investments," Meir Statman, Ph.D., addresses the common misconception that, "socially responsible portfolios as undiversified portfolios have performance that is presumed to trail that of conventional portfolios." Dr. Statman's research and subsequent article states that financial advisors can construct socially responsible portfolios that perform as well as conventional portfolios, or even better, whether through mutual funds or separate accounts.

In this article, Dr. Statman answers the following questions about socially responsible investments (SRI): What do we know about SRI? What distinguishes socially responsible companies from conventional companies? Should investors expect socially responsible investments to yield higher or lower returns than conventional investments? What has been the performance of socially responsible portfolios relative to conventional portfolios? What are the tracking errors of socially responsible portfolios and what can investors do to reduce them?

Meir Statman, Ph.D., is the Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University. He earned B.A. and M.B.A. degrees from the Hebrew University of Jerusalem and a Ph.D. from Columbia University. His research focuses on behavioral finance. He attempts to understand how investors and managers make financial decisions and how these decisions are reflected in financial markets.

The Journal of Investment Consulting editorial board is considering a subsequent article that will discuss socially responsible investors. To learn more about the Journal of Investment Consulting, visit

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Founded in 1985 and located in Denver, CO, the Investment Management Consultants Assn. Inc. serves over 6,800 members and over 5,400 CIMA designees. IMCA offers the only advanced designation designed specifically for investment consultants, the Certified Investment Management Analyst(SM) (CIMA®) program. IMCA also offers an advanced wealth management designation for advisors who work with high-net-worth clients, the Chartered Private Wealth Advisor(SM) (CPWA(SM)). IMCA hosts seven educational conferences each year and several certificate programs that are attended by over 4,000 financial professionals every year.

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