The risk-adjusted performance of responsible investment funds in South Africa

Empirical evidence shows that the phenomenon of responsible investing (RI) is gradually moving from a fringe investment strategy to a mainstream consideration in the global investment arena (Knoll, 2002:681; Schueth, 2003:189). Responsible investing essentially refers to a set of approaches which include moral as well as environmental, social and corporate governance (ESG) considerations along with conventional financial criteria in decisions regarding the selection, retention and realisation of particular investments (Mansley, 2000:3).