Socially Responsible Investing in a Student-Managed Investment Fund: A Case Study
The Journal of Investing, October 2022, 31 (6) 67-79 DOI: 10.3905/joi.2022.1.227
Posted: 8 Apr 2022
Date Written: February 28, 2022
Abstract
Effective incorporation of socially responsible investing (SRI) into student-managed investment fund (SMIF) programs is discussed in the context of a case study. The experience of the example SMIF suggests some techniques to enhance the learning experience. These include: students developing their own SRI policy; team-based discussion to draw out a range of viewpoints, and capture the values of the students and broader society; integration of SRI into investment analysis and decisions, whilst limiting reliance on environmental, social and governance (ESG) ratings; and fostering awareness of the context in which the SMIF operates, including the SRI policy of the sponsoring university and how SRI intersects with reputation risk. Focus on sustainability can be enhanced by setting long-term objectives, establishing key values that are linked to grades, and adopting an overlapping student cohort structure where seniors instruct juniors. A central theme is that embracing and directly addressing the subjective nature of SRI provides opportunities for deep learning by students.
Keywords: Socially responsible investing, ESG, student-managed investment funds
JEL Classification: A20, G11, G41, Q01
Suggested Citation: Suggested Citation
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
Geoffrey J. Warren (Contact Author)
Australian National University (ANU) - Research School of Finance, Actuarial Studies and Statistics ( email )
CBE Building 26C
Kingsley Sreet, Acton
Canberra, ACT 0200
Australia