According to the Wall Street Journal, “Andrew Bischel believes green-minded, socially conscious investors don't have to sacrifice returns to have a portfolio they feel good about.”
“‘There's a belief that the effect of shrinking the universe through constraints either causes you to lose return opportunities or it increases volatility because you don't have diversification,’ Mr. Bischel says. ‘We believe we know how to manage within a constrained universe. It is true that good companies can be good stock -- they perform well over the long term because they are less likely to have disasters down the road.’”
“Socially responsible funds came into vogue and prospered through the 1990s, but not necessarily because they were well-managed, Mr. Bischel says. For the most part, such funds were heavily weighted in the then-booming technology and telecommunications sectors because those companies had a sterling reputation among the social-responsibility crowd. When the bubble burst on tech stocks, those funds sank with them.”
http://online.wsj.com/article/SB121928450253359053.html?mod=googlenews_wsj
Angela Wang