Studies show that socially responsible investing, or SRI, is becoming increasingly popular.

• SRI in the United States is now growing at a much faster pace than the broader universe of all investment assets under professional management.

• From 2007 to 2009, SRI assets increased more than 13% while all investment assets under management edged up by less than 1%.

• Nearly $1 out of every $8 under professional management in the U.S. — 12% of the $25.2 trillion in total assets under management — is targeted to socially responsible investments.

• Among separate accounts, 232 distinctive vehicles or strategies, with $122.4 billion in assets, incorporated social screening in 2009.

In fact, more mainstream money managers are incorporating social and environmental factors into their investment decisions in response to investor demands.

What is SRI?

Simply put, SRI allows individual investors and institutions to create portfolios that reflect their personal, social, and environmental concerns by avoiding certain stocks, such as those in the alcohol, firearms, gambling, military weapons, nuclear power, and tobacco sectors.

By excluding these types of holdings from their portfolios, socially responsible investors seek to meet their financial goals while ensuring their personal investment decisions have a positive impact on people and the planet.

The proliferation of investment products that utilize social screens has contributed to SRI’s increasing popularity among investors of all ages. Additionally, investors today are better educated than ever before, which means they are able to make informed choices that are in line with their beliefs.

Exploding the Performance Myth

Is it possible to own companies that make positive contributions to society — and also provide attractive returns?

In a word, yes. According to a 2005 study by the Social Investment Forum, a national nonprofit organization promoting socially responsible investing, “… empirical research has repeatedly confirmed that, when properly managed, risk-adjusted, and controlled for investment style, socially screened portfolios perform comparably to their unscreened peers.”

If you are among the growing number of investors who want to integrate your personal values and societal concerns with your investment decisions, we can help.

We utilize what is known as a TAMP (Third-party Asset Management Platform) to provide broad diversification across multiple asset classes, investment styles, and institutional money managers. What’s more, you can customize your portfolio to suit your needs and preferences with our guidance.

Here’s what you can do:

• Incorporate your religious beliefs by selecting a Catholic, Islamic/Sharia or Protestant Values screen.

• Exclude entire social categories, including adult entertainment, alcohol, animal welfare, board diversity, contraceptives/abortifacients, environmental performance, firearms, gambling, human rights, labor relations/workplace issues, nuclear power, pork, predatory lending, stem cell research, tobacco and weapons/military.

• Exclude specific companies as you see fit.

• Be assured of continuous monitoring and oversight of money managers and portfolios to ensure your investments stay on track toward achieving your goals. Plus, you can update your investment instructions at any time as your financial situation and preferences change.

You should be aware that the exclusion preferences referenced above have some limitations that need to be understood before an investment decision is made.