This article is part of our Rising Star Portfolio series.
The conventional "wisdom" that socially responsible investing is a money-losing strategy isn't actually wise at all. Here's more proof shining forth from the SRI universe.
Trillium Asset Management, an investment advisory firm specializing in the environmental, social, and governance -- or ESG -- philosophy, recently released victorious three-year returns for its Sustainable Opportunities portfolio. The portfolio has achieved an average annual return of 2.8%, double the returns of the S&P Composite 1500 benchmark.
Trillium has bested the benchmark by targeting companies with stellar sustainability profiles, ones which have revolutionized areas like energy efficiency, clean energy, sustainable farming, and preventive medicine.
A look at some companies
In particular, Trillium's Sustainable Opportunities portfolio and my Rising Star portfolio apparently have at least one common component other than a general SRI philosophy and an emphasis on companies that do good in the world. We've both homed in on Whole Foods Market
Overall, Trillium's market-beating portfolio reveals compelling stock ideas for future research. Itron
Obviously, socially responsible investing can be very profitable, and the investment method's future looks brighter than ever given the building sustainability megatrend. These days, there's no shortage of stock ideas for the growing numbers of us who are interested in positive portfolios, either. So far, the method that I've used in compiling my Rising Star portfolio has felt like a rewarding way to invest on many levels, and clearly, others are having similar experiences.