Socially Responsible Investing in a Student-Managed Investment Fund: A Case Study

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, such as students developing their own SRI policy; team-based discussion to draw out a range of viewpoints and to capture the values of the students and broader society; integration of SRI into investment analysis and decisions while limiting reliance on environmental, social, and governance ratings; and a fostered 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.