JAPAN'S DAI-ICHI LIFE TO SET UP SOCIAL RESPONSIBILITY FUND

Dai-ichi Life Insurance Co. (TSE:8750) will establish next month a 1 billion yen (US$11.8 million) fund for socially responsible investing (SRI), becoming the first life insurer to do so on its own.

The fund will invest in 100 domestic firms excelling in such areas as environmental stewardship and social contributions.

Based on market capitalization and other factors, 200 listed companies that publish corporate social responsibility reports will be picked first. Dai-ichi Life analysts will narrow them down by evaluating such matters as environmental conservation efforts and employment conditions and checking for misconduct.

The investments will be for around five years and, depending on the results, the size of the fund could be expanded.

On top of helping socially responsible firms to grow, the life insurer aims to build known-how for its own social contribution activities.

SRI, whereby investment targets are chosen not only for earnings results and growth potential but for social contributions as well, is said to offer better returns than ordinary stock investing. Domestic SRI mutual funds had a balance of 640.5 billion yen as of March-end.

"SRI in Japan is still much smaller in scope than in the U.S., and there is much room for growth," says the life insurer.