ProjectsPast and current JFS projects


January 3, 2007


Indicators - Society / Money Flow

S-5. Percentage of SRI Type Securities Investment Fund Assets in Total Investment Trust Net Assets

1.Current Values

2.Current Points
(out of a perfect score of 100 by 2050) 2 points
Calculation method:
(Current value - minimum value) / (2050 target value - minimum value) x 100

3. Explanation of Indicator
Socially responsible investing (SRI) is the flow of socially considerate money and the investment and lending activities that create that flow. By encouraging corporate activities that are ethical and contribute to sustainability and by discouraging the opposite, SRI helps to form not just financial capital but also the social capital of ethical behavior and peace of mind. SRI includes, in addition to 1) investment funds, 2) stock investments for shareholding purposes, and 3) social ventures, community investments and the like, but due to no reliable data at present, our indicator is only for investment funds.

4.Target for 2050

5.Ideal for the Future

6. Rationale for Ideal and Target Values
The pursuit of short-term investment returns that ignore social and environmental aspects is at odds with sustainable value creation in the long-term perspective. Shareholders and investors should not simply want rights; they must also want to fulfill the responsibilities that go with those rights.

Investment trusts must at the very least eliminate from their investment portfolios those companies that have social problems, and so we have set our ideal at 100%. The SRI working assets in the United States SRI market, which is said to be the most developed, total 2 trillion 175 billion dollars (in 2003), and make up 11% of the financial assets managed through financial institutions. We have set the 2050 target value at 20%, a number exceeding that, which will lead the world in SRI.

7. Source
Social Investment Forum Japan, "Summary of SRI investment funds in Japan" (Japanese only)

List of SRI investment funds in Japan(Japanese only)

Investment Trusts Association Japan, "Total Net Assets of Japanese Investment Trusts"

8. Notes
Total net assets of Japanese SRI investment trusts are 115.7 billion yen (U.S.$ 1 billion), and the total net assets of all investment funds are 40 trillion, 999.7 billion yen (U.S.$ 356 billion).