Test Your Investing Savvy

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Answer: Calvert Equity Fund (11.14%), BlackRock Focus Growth (11.01%), Parnassus Core Equity (12.68%), and Fidelity ADV Equity Income (9.15%). One persistant myth about SRI is that you have to sacrifice performance in order to invest with your values. However, 30 years of professional management has significantly leveled the playing field. The companies owned by these funds may be better business risks because their managers focus on long-term growth, require transparency throughout the organization and promote clear environmental and workplace risk mitigation policies.

Answer: Only PRBLX earned a 5-Star Morningstar above average 10-year rating. The 10-year ratings for the other funds were: MDFOX (3 stars – average), CSIEX (3 stars – average), FEIAX (2 stars – below average). Because SRI funds focus on long-term performance, they are generally less affected by periods of high market volatility.

Answer: Parnassus, Fidelity, Calvert, BlackRock. It’s a commonly held misconception among advisors that SRI portfolios have higher expense ratios due to their integration of ESG analysis.
However, good management is good management, no matter the business model.