Comments on: Does investing in socially responsible funds cost more and is it justified? http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/ Investing for beginners Tue, 14 Oct 2008 19:41:20 +0000 http://wordpress.org/?v=2.6.2 By: What Is Your Thought On Socially Responsible Investing (SRI)? | Moolanomy http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-1827 What Is Your Thought On Socially Responsible Investing (SRI)? | Moolanomy Thu, 24 Jan 2008 14:05:27 +0000 http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-1827 [...] Does investing in socially responsible funds cost more and is it justified? @ Money Relations [...] [...] Does investing in socially responsible funds cost more and is it justified? @ Money Relations [...]

]]> By: Presenting The Carnival Of Personal Finance #125 | My Two Dollars http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-266 Presenting The Carnival Of Personal Finance #125 | My Two Dollars Mon, 05 Nov 2007 13:09:16 +0000 http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-266 [...] Does investing in socially responsible funds cost more and is it justified? (at Money Relations.) [...] [...] Does investing in socially responsible funds cost more and is it justified? (at Money Relations.) [...]

]]> By: moneyrelations http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-260 moneyrelations Thu, 01 Nov 2007 02:24:33 +0000 http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-260 Interesting... I read the last sentence of the MER quote again to see if I got the meaning right... it's deliciously vague :) I think it could be a warning against high MERs or a justification of high MERs. But I'm afraid I'm going to have to pass on these SR funds as I too want to invest for myself. It's for me to decide what I want to do with my money and how I want to give to charity should I make a profit and collect a tax receipt. I don't want to give these away in fees with no guarantee of returns. And finally, out of a moment of weakness, I did buy some overpriced fair trade tea leaves from a coffee shop. I should ask them how much is going to the farmers and how much they are skimming. Interesting… I read the last sentence of the MER quote again to see if I got the meaning right… it’s deliciously vague :) I think it could be a warning against high MERs or a justification of high MERs.

But I’m afraid I’m going to have to pass on these SR funds as I too want to invest for myself. It’s for me to decide what I want to do with my money and how I want to give to charity should I make a profit and collect a tax receipt. I don’t want to give these away in fees with no guarantee of returns.

And finally, out of a moment of weakness, I did buy some overpriced fair trade tea leaves from a coffee shop. I should ask them how much is going to the farmers and how much they are skimming.

]]> By: Nancy (aka money coach) http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-256 Nancy (aka money coach) Wed, 31 Oct 2007 07:07:41 +0000 http://www.moneyrelations.com/2007/10/30/does-investing-in-socially-responsible-funds-cost-more-and-is-it-justified/#comment-256 I might be naive but what I hope they're arguing is that there's a NEGATIVE correlation between MERs and fund performance - ie. more gets lopped off before being passed along to the client, which indeed 'impacts' the return to the investors. I think there may be a genuine case to be made for SRI funds having higher mer's -- they don't have the economies of scale, for one thing, ie., tend to be new, boutique firms. And again, perhaps naively, I do hope that by representing a sizeable minority of shareholders, they do indeed lobby effectively for changes in practice. All that being said ... I still do all my own investing, and have the piece of mind that comes from having made up my own mind about any given company. Regarding shopping - for me, my choices have been creeping towards more sustained ones. I get organic, mostly local groceries delivered to me now, from an awesome company called SPUD in Vancouver. And I usually buy free-range eggs and chickens (ugh. I saw a truck load of chickens crammed ... and have been turned off ever since --- but can live with free range chickens). So, yeah, I'm starting to pay more in exchange for the 'feel good' factor. But that's me living on the left-coast :) I might be naive but what I hope they’re arguing is that there’s a NEGATIVE correlation between MERs and fund performance - ie. more gets lopped off before being passed along to the client, which indeed ‘impacts’ the return to the investors.

I think there may be a genuine case to be made for SRI funds having higher mer’s — they don’t have the economies of scale, for one thing, ie., tend to be new, boutique firms.

And again, perhaps naively, I do hope that by representing a sizeable minority of shareholders, they do indeed lobby effectively for changes in practice.

All that being said … I still do all my own investing, and have the piece of mind that comes from having made up my own mind about any given company.

Regarding shopping - for me, my choices have been creeping towards more sustained ones. I get organic, mostly local groceries delivered to me now, from an awesome company called SPUD in Vancouver. And I usually buy free-range eggs and chickens (ugh. I saw a truck load of chickens crammed … and have been turned off ever since — but can live with free range chickens). So, yeah, I’m starting to pay more in exchange for the ‘feel good’ factor. But that’s me living on the left-coast :)

]]>