To date, research into socially responsible investment (SRI), and in particular the socially responsible investment funds industry, has focused on whether investing in SRI assets has any differential impact on investor returns. Prior findings generally suggest that, on a risk-adjusted basis, there is no difference in performance between SRI and conventional funds. This result has led to questions about whether SRI funds are really any different from conventional funds. This paper examines whether the portfolio allocation across industry sectors and the (...) stock-picking ability of SRI managers are different when compared to conventional fund managers. The study finds that SRI funds exhibit different industry betas consistent with different portfolio positions, but that these differences vary from year to year. It is also found that there is little difference in stock-picking ability between the two groups of fund managers. (shrink)

Herman Melville’s Moby Dick (1851) may have set the lengthy standard for books treating whales, but D. Graham Burnett has more than matched that standard with his hefty, almost eight-hundred page tome, The Sounding of the Whale. The requisite explanatory subtitle specifies the author’s intent to write the history of what he refers to as “whale science” spanning the twentieth century. The book divides rather naturally into three complementary sections. The opening two chapters discuss early conservation efforts aimed at managing (...) the whale industry. Next, two more chapters investigate the formation of the International Whaling Commission (IWC). A final chapter argues that dolphin research in the 1960s and 1970s led to the strident environmental concerns of the late twentieth century, including the drive to “save the whale” (the five chapters are bracketed by a lengthy introduction and conclusion).The most compelling features of Burnett’s book are delivered in the first four chapters. As .. (shrink)

In the superannuation/pension industry, ordinary investors entrust their retirement savings to the trustees of the superannuation plan. Investors rely on the trustees to ensure that ethical business and risk management practices are implemented to protect their retirement savings. Governance practices ensure the monitoring of ethical risk management (Drennan, L. T.: 2004, Journal of Business Ethics 52, 257-266). The Australian superannuation industry presents a unique scenario. Legislation requires employers to contribute a minimum of 9% of the employees wage to retirement savings. (...) However, there are no legislated governance standards, although there are standards of recommended governance practices. In this article, we examine the level of voluntary adoption of governance practices by the trustees of Australian public sector and industry superannuation funds. We also assess whether superannuation governance practices are associated with performance and volatility /riskiness of returns. Survey results show that the majority of superannuation plans adopt recommended governance practices supporting the concept of ethical management of the member's retirement savings. The examination of governance principles that impact returns and risk shows that board size and regular review of conflicts are positively associated with return. Superannuation plans with higher volatility in returns meet more frequently. (shrink)