What has God done for you this year? As Christmas is upon us and year winds to a close, it is proper for us to reflect on the year behind. Often our reflections lead us to major crises that we endured, or possibly narrowly avoided, and hopefully some major accomplishments and joys that we have […]
Probably the biggest criticism of SRI investing is that constructing a portfolio from a restricted universe of opportunities will impose too great a cost on the portfolio’s risk-adjusted returns, relative to their unrestrained counterparts. In other words, when trying to “do good,” there will be too heavy a cost on the portfolio.
When looking at the Inspire Small/Mid Cap Impact Equal Weight Index, early indications show a possible positive risk-adjusted performance benefit when using Inspire’s Impact Scoring methodology to construct their index. From 2012 to 2016, the Inspire index outperformed an equally weighted 50/50 blend of the S&P 400 and S&P 600 by over 4%, on an annualized basis, while maintaining a similar standard deviation.