In the presented paper there is analyzed the idea, essence and strategies of socially reponsible investing, there is also made a review of socially responsible mutual fund market worldwide and in the Baltics, and made a research on the relation between financial and social performance of mutual funds. Finally, there are presented results of a comparative analysis of S&P 500 TR and Index Morningstar Moderate Target Risk to their benchmarks. The presented results show the trends of socially responsible market and the effectiveness of socially responsible mutual funds comparing to their benchmarks. The specifics of socially responsible mutual market in the Baltics and research of the link between financial and social performances of mutual funds may lead to the further scientific researches.

Full text: PDF


socially responsible investing, socially responsible mutual funds, ESG criteria, benchmarks, socially responsible mutual fund market.


Andritoiu, D., 2010. Socially Responsible Investing: Invest and Let Live, J.P. Morgan Investment Analytics & Consulting, [online] Available at: [Accessed 23 October 2012].

Barreda-Tarrazona, I., Matallin-Saez, J. and Balaguer-Franch, M., 2011. Measuring Investors’ Socially Responsible Preferences in Mutual Funds. Journal of Business Ethics, 103(2), pp.305-330.

Barnett, M. L. and Salomon, R. S., 2006. Beyond Dichotomy: The Curvilinear Relationship Between Social Responsibility and Financial Performance. Strategic Management Journal, 27(11), pp.1101–1122.

Bauer, R., Koedijk, K. and Otten, R., 2005. International evidence on ethical mutual fund performance and investment style. Journal of Banking & Finance, 29, pp.1751–1767.

Bello, Z. Y., 2005. Socially Responsible Investing and Portfolio Diversification. Journal of Financial Research, 18(1), pp.41-57.

The Benefits of ESG. [online] Available at: [Accessed 15 November 2012].

Benson, K. L. and Humphrey, J. E., 2008. Socially responsible investment funds: Investor reaction to current and past returns. Journal of Banking & Finance, 32, pp.1850-1859.

Benz, C., 2011. Moningstar guide to mutual funds – five-star strategic success. Second Edition. John Wiley and Sons, Inc. NewYork Chichester – Brisbane – Toronto Singapore.

Bivainis, J. and Volodzkienė, L., 2008. Nekilnojamojo turto investiciniai fondai: vieta investicinių fondų įvairovėje /Real Estate Investment Trusts: a Place in the Diversity of Investment Funds. Verslas: teorija ir praktika /Business: Theory and Practice, 9(3), pp.149-159, doi: 10.3846/1648-0627.2008.9.149-159.

Carter, Sh., 2007. Socially Responsible Mutual Funds, [online] Available at: [Accessed 13 December 2012].

Chegut, A., Schenk, H. and Scholtens, B., 2011. Assessing SRI Fund Performance Research: Best Practices in Empirical Analysis. Sustainable Development, 19(2), pp.77-94.

Climent, F. and Soriano, P., 2011. Green and Good? The Investment Performance of US Environmental Mutual Funds. Journal of Business Ethics, 103(2), pp.275-287.

Cortez, M. C., Silva, F. and Areal, N., 2009. The Performance of European Socially Responsible Funds. Journal of Business Ethics, 87(4), pp.573-588.

European SRI study 2008, [online] Available at: [Accessed 26 October 2012].

European SRI study 2010, [online] Available at: [Accessed 30 October 2012].

European SRI study 2012, [online] Available at: [Accessed 5 March 2013].

European Reponsible Investing Fund Survey 2012, [online] Available at: [Accessed 3 April 2013].

Ferruz, L., Marco, I. and Ortiz, C., 2007. Socially Responsible Investment: Mutual Funds. Global and Local Trends. International Journal of Applied Economics & Finance, 1(2), pp.120-125.

A Guide to Mutual Fund Ratings, [online] Available at: [Accessed 16 January 2012].

Green, Social and Ethical Funds in Europe. 2010 Review, [online] Available from Internet: [Accessed 10 January 2012].

Gil-Bazo, J., Ruiz-Verdu, P. and Santos, A., 2010. The Performance of Socially Reponsible Mutual Funds: The Role of Fees and Management Companies. Journal of Business Ethics, 94(2), pp.243-263.

Howell, R., 2008. Globalization and the Good Corporation: Whither Socially Responsible Investment? Human Systems Management, 27(3), pp.243-253.

Kempf, A. and Osthoff, P., 2008. SRI Funds: Nomen est Omen. Journal of Business Finance & Accounting, 035(9&10), pp.1276–1294.

Kinnel, R., 2009. Investing in Socially Screened Funds. Morningstar Fund Investor, 17(7), pp.10-18.

Kinder, P.D., 2005. Socially Responsible Investing: An Evolving Concept in a Changing World. Boston: KLD Research & Analytics, Inc.

Kramer, M., 2007. Rating the SRI funds. Green Money Journal, [online] Available at: [cited 16 December 2012].

Kridel, T., 2005. Green Investing. Mother Earth News, 210, pp.72-80.

Limestone New Europe Fund, Autumn 2012, [online] Available at: [Accessed 5 April 2013].

Moningstar Sector Methodology. The Morningstar RatingTM for Funds, 2008, [online] Available at: [Accessed 15 November 2012].

Morningstar Moderate Target Risk Index, [online] Available at: [Accessed 15 March 2013].

Natural investment social rating, [online] Available at: [Accessed 25 November 2012].

Northcott, A., 2009, Mutual funds book – how to invest in mutual funds & earn high rates of returns safety. Ocala: Atlantic Publishing Company.

Pivo, G., 2005. Is There a Future for Socially Responsible Property Investments? Real Estate Issues, 22 September, pp.19-26.

Plakys, M. 2009. Tarptautiniai socialiai atskingi investiciniai fonai [International Socially Responsible Investment Funds]. Business in XXI Century 1(3), pp.56–60, doi: 10.3846/153.

Plakys, M., 2011, Investicinių fondų rinkų efektyvumas: daktaro disertacija/Efficiency of investment fund markets: Doctoral Dissertation. Vilnius Gediminas Tchnical Univesity. Vilnius: Technika.

Plakys, M. and Ambrusevič, N., 2009. Aukštųjų technologijų sektorius ekonomikos internacionalizavimo sąlygomis: investiciniai fondai ir jų veikla. Viešasis administravimas, 2(22), pp.32−41, ISSN 1648-4541.

Radu, I. and Funaru, M., 2011. Socially Reponsible Investments in Mutual Funds. Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, 4(1), pp.157-168.

Report on Socially Responsible Investing Trends in the United States 2010, Investment Forum Foundation [online] Available at: [Accessed 18 December 2012].

Report on Sustainable and Responsible Investing Trends in the United States 2012, Investment Forum Foundation [online] Available at: [Accessed 10 April 2013].

Schueth, S., 2003. Socially Responsible Investing in the United States. Journal of business ethics, 43(3), pp.189-194.

S&P 500 Sector Breakdown [online] Available at: [Accessed 5 March 2013].

Statman, M., 2008. Quiet Conversations: The Expressive Nature of Socially Responsible Investors. Journal of Financial Planning, 21(2), pp.40-46.

Umlas, E., 2008. The Global Expansion of SRI: Facing Challenges, Meeting Potential. Development & Change, 39(6), pp.1019-1036.