Responsible Companies Offer Better Returns Says TIAA-CREF Manager

Buying socially responsible bonds does not require an investor to sacrifice returns for social benefit, said Stephen Liberatore, portfolio manager for the TIAA-CREF Social Choice Bond Fund. Liberatore added that companies that concentrate on social criteria like ESG - Environmental, Social and Governance - are generally well-run, market-leaders and are therefore strong credits. He said a good example from his portfolio is Topaz Solar Farm, which is owned by Berkshire Hathaway through MidAmerican Energy. Finally, Liberatore said he expects the Federal Reserve to raise rates in late 2015 because slack remains in the economy.