This study focuses on the exploration of the performance of the UK SRI funds. The current research occupied the recent data ranging from 2001 to 2013, including the “UK and Global economic recession periods”. The data set was mainly based on the returns of the 227 screened SRI funds of 70 fund managers on monthly basis. Moreover, it employed more than one estimation model in a research with the aim of finding recent evidence and reaching more robust conclusions. The research focused on the five hypotheses developed. The first finding indicates that there is no difference in the performance between the SRI funds and market. The second finding implies that the performance of the SRI funds is indifferent not considering whether they are grouped by “large-size” firms or “small-size” firms. The third finding is similar to the previous ones, as it cannot be concluded that the performance of the SRI fund portfolios differs from each other by various values of a book-to-market ratio. The result implies that the SRI fund portfolios grouped by their sector weighting significantly underperform the market. And the final finding is that SRI fund managers have positive selective ability, yet this skill does not assist to have a “right market timing” ability. The investigation reveals some recent evidence that draws immediate attention to the special characteristics of the SRI funds. Another feature of the study is highlighted by the demonstration of a negative correlation among risk factors, thereby it shed light on the fact that, when the SRI funds tend to outperform the market, volatility lowers, the “small-firm” effect swaps for “large-firm”, the tendency for “growth-orientation” strengths, and the momentum strategy weakens.Finally, it is concluded that the SRI funds could mainly be used as an “insurance” tool rather than an “investment” instrument.
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