There has been significant change in global asset management around the world. Recent trends include the search for alpha, outflows from traditional asset classes to alternative asset classes, and the blurring of the very asset class distinctions.
Accompanying this has been a strong trend towards ethical or socially responsible investing (SRI) or lately given much of the news on climate change – Sustainable Investing.
Much of the ethical investment market is based upon particular value systems targeted to specific customer segments. Examples include Green Equity Funds, Alternative (non-carbon) Energy funds and Islamic funds based on Shariah law.
Within the faith based sector there are a growing number of public faith-based equity funds catering to both Islamic and Christian investors. These funds typically invest in a screened universe of qualifying companies. In addition to such public funds church pension funds and religious foundations have required that many private mandates incorporate SRI filters.
What is noticeable within the category of faith based investing is that there is a significant gap in servicing a very large group of faith adherents – Hindus, Buddhists, Jains and Sikhs.
As a first step to filling this gap, Dharma Investments and Dow Jones Indexes launched the Dow Jones Dharma Indexes.
Dharma investing is a new and specific area of SRI – where investments are determined according to the principles of dharma – as described in the sacred works of Hinduism and Buddhism in particular but with application to Jainism and Sikhism also.
