The Study On The Development Of Socially Responsible Investment Funds In China

Based on the concept of socially responsible investment, socially responsible investment fund (SRI fund) invests in the companies or industries which benefit the society and environment. As a new kind of investment method, socially responsible investment not only pays attention to the financial performance of investment, but also lays emphasis on the social and environmental impact of the investment. Issuing SRI fund is an important way to fulfill socially responsible investment, which contributes to making resources flow to companies that fulfill social responsibilities, and supporting the sustainable development of economy and society, and the whole process could generate great economic and social effects.SRI funds have been the mainstream in US and European capital market, but there are only three equity SRI funds and one index SRI fund in China, the amount and size of China’s SRI funds are very limited, SRI funds in China are still at preliminary stage of the development. Issuing SRI funds is an important way for China’s capital market to support sustainable development. Investors’growing demand for socially responsible investment provides opportunities for the development of SRI funds in China. Therefore, studying the international experience of SRI, and the development of China’s SRI funds are of great theoretical and practical significance.Applying theoretical, empirical, comparative and inductive research method, this paper firstly reviews the abroad and domestic literature related to SRI, defines the concepts related to SRI funds, and introduces theories about the development of SRI and SRI funds’ portfolio investment. Secondly, it analyses the developing situation of SRI funds in US and European developed countries and emerging market economies in Asia and Africa, introduces the typical Domini SRI fund, summarizes the driving forces of abroad SRI funds. Thirdly, it studies the developing situation of SRI funds in China, analyses China’s first SRI fund------AEGON-Industrial SRI fund, and focuses on its performance, which indicates that the growth rate of net asset value and risk-adjusted rate of return of AEGON-Industrial SRI fund are superior to its traditional counterparts and CSI300Index. Finally, this paper summaries the problems relating to China’s SRI funds’development, combines China’s real situation and the development experience of abroad SRI funds, and throws out suggestions for the further development of China’s SRI funds, which includes increasing the investment proportion of institutional investors among SRI funds, improving the external environment and strengthening the internal driving forces of SRI funds.