EUROPE - Socially responsible European smaller companies have outperformed their non-compliant counterparts since a new index monitoring SRI returns was launched.
The Kempen/SNS Smaller Europe SRI Index has increased 9.18% since October 1, compared with a 7.78% increase in the HSBC Smaller European Companies Index.
The Kempen/SNS – which is believed to be the first index to track the performance of SRI smaller companies in Europe – follows 69 companies in 14 countries. A further 14 companies have been approved and will join in January.
The index is inclusive, enabling Kempen Capital Management and SNS Asset Management to work with companies to promote the adoption of SRI management practices.
While the majority of large-cap companies were found to be compliant, assistance was found to be lacking for smaller companies.
Kempen managing director Neil Dunn said the index had got off to “a great start”.
He added: “The interest from smaller European companies since the launch has been very encouraging and the whole subject of SRI is gaining interest with pension funds, consultants and trustees.
“We expect the index to grow to around 150 companies by mid 2004.”
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