Derwall, J. and K. Koedijk (2009), "Socially Responsible Fixed-Income Funds", Journal of Business Finance and Accounting, forthcoming.

The growing importance of SRI in the investment arena has resulted in considerable academic interest in the performance of socially responsible equity mutual funds. This is the first comprehensive study to evaluate the performance of mutual funds that invest in socially responsible fixed-income securities.
It measures the performance of socially responsible bond and balanced funds relative to matched samples of conventional funds, over the period 1987-2003. Using multi-index performance evaluation models, the study shows that the average SRI bond fund performed similar to conventional funds, while the average SRI balanced fund outperformed its average conventional peer by 1.3% per year. The expenses charged by SRI funds, match those charged by conventional funds and do not cause SRI funds to underperform.