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The NI Social RatingSM is a tool you can use to get a snapshot of social performance, but portfolio content is not a part of the Rating, as we do not attempt to evaluate every company in every fund. Investors are urged to consult a fund's website, quarterly reports, and annual reports to review a fund's portfolio holdings.
The Natural Capital Institute's www.responsibleinvesting.org is another helpful resource, and many major companies are rated on social responsibility criteria in "The Better World Shopping Guide" by Ellis Jones (New Society, 2006).
Through the years there have been many passionate discussions about whether a particular company (i.e. McDonalds or Wal-Mart) or industry (i.e. pharmaceuticals or oil companies) belongs in an SRI mutual fund. As there is no consensus on these matters, these decisions need to be made by each individual investor. For those with extremely stringent criteria there may not be any SRI funds that are acceptable, though it may be possible to customize a portfolio to suit one's social priorities.
The Rating does NOT include any consideration of the financial performance of mutual funds - a fund could earn ♥♥♥♥♥ from NI and still have a poor financial track record. (There are many sources for SRI fund performance data including www.socialinvest.org, www.socialfunds.com, and www.greenmoney.com).
Conversely, a fund with a ♥ or ♥♥ rating that screens on a limited number of social issues may be a very desirable investment to build a diversified portfolio of SRI mutual funds, or may be screening on an issue that is especially relevant to a particular investor. Investors would be wise to discuss these variables within each fund with a financial professional to assure that they have a good match for their personal social criteria, risk tolerance, and financial expectations. |
The Heart Rating 
