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Institutional Investor looks at Socially Responsible Investing:

Watch videos of II's Executive Editor, Mike Peltz, and reporters, Imogen Rose-Smith and Katie Gilbert.

Read Katie Gilbert’s story about SRI 2.0 – today’s socially responsible investing model.

Click through our slideshow of images from the Compass Conference on SRI.

Growing up in the 1960s and early ’70s, Kerry Kennedy (pictured below, left) spent her summers on Cape Cod, in Hyannis Port, Massachusetts, with her many siblings and cousins at the ­Kennedy Compound. The three homes that make up the compound, located on six neatly manicured acres alongside Nantucket Sound, are still owned by the Kennedys, who descend on the Cape every summer. This year was no different, except that Kerry, the seventh of Robert and Ethel Kennedy’s 11 children, persuaded her family to open its doors for three days to a serious cause: expanding fiduciary responsibility.

That’s how a group of some 150 people — among them, 31 fiduciaries representing some of the U.S.’s largest public pension plans, including the California Public Employees’ Retirement System, the Florida State Board of Administration and the North Carolina Retirement Systems, as well as corporate pension plans, sovereign wealth funds, university endowments and foundations — found themselves invited to the Kennedy Compound in late July. Ethel Kennedy greeted the guests, who sneaked glances at the family photos that clutter almost every surface of her longtime residence and chatted with other members of the clan, including Kerry’s brother Bobby Jr. and cousin Ted Jr., before wandering out onto the wooden deck. From there they made their way inside a large tent, decorated with strings of twinkling lights, where dinner, featuring New ­England clam chowder, was served.

James Wolfensohn (pictured right), former head of the World Bank and a longtime friend of the Kennedys, gave the keynote address. The world, the veteran investment banker told his audience, is changing fast. In 30 years as much as half of global GDP will come from India and China, he said. “And the thing is that, for those of us that live in the currently viewed rich world, thi s is a change of proportions that our generation has never seen before,” he explained. “The change in itself is dramatic in terms of numbers, but the most dramatic change is what’s going to happen in the economics. And it’s not just in the economics; it’s what is happening socially and intellectually in those countries.” In this new world order, Wolfensohn suggested, fiduciaries will need to rethink not only where they put their money but how they invest and what they value. In short, they are going to have to focus on investing for the global good.