| |
|
|
GreenMoney Journal - publishing since 1992
Fall 2010 issue
Socially Responsible Investing – Better Companies, Better Communities
|
| |
Socially Responsible Mutual Funds
In a year that saw many portfolios end lower - in fact 83 percent of stock mutual funds lost money
in 2001 losing an average of -10.9% - there were some bright spots like the average bond mutual
fund gaining +5.1% along with the higher fourth quarter giving investors some optimism in the
market.
Returns for top performing Socially responsible mutual funds for 2001:
1)
Ariel Appreciation: +16.2
2) Ariel fund: +14.2
3) Calvert Social Bond: +13.4
3)
Citizens Value: +13.4
5) Parnassus - Fixed income: +11.3
6) Parnassus Equity Income: +10.0
Here is a variety of interesting news and returns from the top socially and environmentally
responsible mutual funds:
ARIEL
The Ariel Fund family ended up with the top two
performing socially screened funds for 2001. The quality performance of the funds has been so
consistent that African-American portfolio manager John Rogers Jr., was asked to appear again on
Wall Street Week with Louis Rukeyser last November.
Business Week magazine (Dec. 17) did
a special report on the Mutual Fund industry, which included a section on small funds that are
performing well. The section included Melody Hobson, president of Ariel Mutual Funds in Chicago
which manages $6.5 billion with $1.3 billion in mutual funds. The article mentioned their
investment style of deep value in small and medium size companies.
Lipper ranked The
Ariel Fund #1 out of 16 Small-Cap Value funds since its inception on 11/6/86 through 12/31/01. The
Fund also has a five star rating from Morningstar and returned +14.2%, +11.5%, and +15.8 % for the
one, three and five-years periods ending 12/31/01.
The Ariel Appreciation Fund also
performed well returning +16.2%, +9.9%, and +17.0% for the one, three and five year periods ending
12/31/01, mostly beating the average Mid-Cap Value fund which returned +10.3%, +12.2% and +11.5%,
respectively.
For more information go to-
http://www.arielmutualfunds.com
CALVERT
Calvert was busy with good performing funds and adding the environment screen to
the "Know What You Own" web tool.
The Calvert Social Equity Fund has shown consistent
performance, returning +0.7%, +11.4% and +12.9% for the one, three, and five year periods ending
12/31/01. The average Multi-Cap Core fund returned -1.7%, +5.4%, and +10.5%, respectively.
The Calvert Social Bond Fund was the #2 ranked Lipper A-rated Corporate Debt Fund for 2001,
returning +13.4%, +6.6% and +7.1% for the one, three and five year periods ending 12/31/01.
Calvert launched the free "Know What Your Own" service in 1996 to help investors become more
aware of the types of companies they own in their mutual fund portfolios. It has emerged as the
most widely used tool on the firm's web site at- www.calvert.com. The "environment" screen is
composed of companies drawn from the 1,000 largest U.S. companies, which fail Calvert's
environmental criteria because they:
produce more pollution per dollar of revenue than
their industry peers,
repeatedly violate environmental laws & regulations, or
conduct
activities that destroy fragile ecosystems and habitat.
The environment screen is the latest
installment to the Know What You Own service, which currently gives investors the ability to screen
their mutual portfolios for tobacco, nuclear power and firearms companies. The tool also lets users
screen companies for board diversity practices.
CITIZENS
Citizens made one of the
smartest moves of the year by acquiring the top performing Meyers Pride Value Fund, now known as
the Citizens Value Fund. Shelly Meyers, who will remain the Fund manager, recently explained the
Fund's investment objective and investment strategy: "The Fund seeks long-term capital appreciation
through investing in a diversified portfolio of undervalued, well-managed and fundamentally sound
companies that we believe will out perform the market over the long term. We look for companies
with three specific criteria - valuation, fundamentals and positive momentum catalysts."
The Fund typically holds 40-55 companies. The performance has been outstanding; in fact it
finished the year as the #10 best performing fund in the Multi-Cap Value category, returning
+13.4%, +13.3%, and +15.0% for the one, three and five year periods ending 12/31/01. The average
Multi-Cap Value fund returned -1.8%, +5.4%, and +10.5%, respectively.
The two year-old
Citizens Small Cap Growth Fund performed well during 2001, returning +8.8% compared to the average
Small-Cap Growth fund which returned -10.8%.
For more information go to-
http://www.citizensfunds.com.
DOMINI
Recently Domini Social Investments sent a
letter to the Securities and Exchange Commission (SEC) urging a rule requiring all mutual funds to
adopt and publish proxy-voting policies and to record and publicly disclose their proxy votes. The
letter from Amy Domini to SEC Chairman Harvey L. Pitt states that proxy voting disclosure "should
be considered a fundamental fiduciary obligation that mutual funds owe to their shareholders, and
should be required as a matter of law." (to see the complete text of the letter go to-
www.domini.com). During the year Domini released their sixth annual proxy voting guidelines and
social screening guidelines. The 2001 edition describes the firm's voting policy on more than 90
types of resolutions ranging from environmental reporting to executive compensation to labor
relations in the U.S. and abroad.
PARNASSUS
Once again Parnassus portfolio manager
Jerry Dodson and staff have shown up not just to play but to win.
The Parnassus Equity
Income Fund finished the year as #4 best performing fund in the Equity Income category with returns
of +10.0%, +12.8%, and +13.9% for the one, three and five years periods ending 12/31/01,
respectively. The average Equity Income fund returned -5.6%, +1.8%, and +8.1%, respectively. The
Fund was also on the Schwab Mutual Fund Select List (Winter '01).
The Parnassus Fund has
shown consistent performance returning +7.8%, +17.6% and +16.4% for the one, three and five year
periods ending 12/31/01. The average Multi-Cap Value fund returned -1.7%, +5.4%, and +10.5%,
respectively.
For more information go to-
http://www.parnassus.com.
PAX WORLD
One of GreenMoney's favorite funds is the Pax World Balanced Fund, which turned 30 in 2001. Pax
World Balanced was the first socially responsible mutual fund, launched way back in August 1971. We
give the $1.2 billion fund with its 70,000 shareholders well-deserved congratulations!!
Since the Fund's introduction in 1971, the number of socially and environmentally responsible
funds has risen to over 200, with net assets over $100 billion, according to a report released by
Pax World Funds.
Over the next decade, based on the growth rate since Pax World
Balanced's inception, the Wiesenberger/Thomson Financial study commissioned by Pax World projects
total net SRI fund assets could top $278 billion.
"It is apparent that socially and
environmentally responsible mutual funds not only are here to stay, but that they are likely to
undergo considerable expansion in the coming years," observed Thomas W. Grant, Pax World president
who appeared CNBC's PowerLunch program on the anniversary.
For more on the 30th
anniversary and the five emerging issues that socially and environmentally responsible mutual funds
are likely to focus on over the next 10-25 years visit the fund's web site at-
http://www.paxfunds.com
TIMOTHY PLAN
Finally, an interesting development with a
faith-based mutual fund we covered earlier this year: the conservative Christian-screened Timothy
Plan Fund has continued a solid performance, returning +24.2%, +15.9%, and +10.9% for the one,
three and five year period ending 12/31/01. The Fund has outperformed the average Small-Cap Core
fund which returned +7.6%, +11.3%, and +10.4% percent, respectively.
TWO THIRDS OF
SOCIALLY RESPONSIBLE MUTUAL FUNDS
RECEIVE HIGHEST PERFORMANCE RATINGS THROUGH 2001
Even
With Market Slump, Performance Ratings Nearly Identical to Those For 2000
The continuing
market slump during 2001 did not dim the performance ratings of socially and environmentally
responsible mutual funds, according to new data released today by the nonprofit Social Investment
Forum. Nearly two-thirds (63 percent) of all screened funds tracked by the Forum earned one of the
two highest rankings for performance from either Lipper, Inc. or Morningstar or both. Despite the
stock market downturn, the number of top marks from Lipper and Morningstar in 2001 was almost
unchanged from 2000.
Of the smaller group of 16 screened funds tracked by the Social
Investment Forum with $100 million or more in assets, four out of five (81 percent) received top
performance marks for 2001 from one or both of the tracking firms.
Social Investment
Forum spokesperson Steve Schueth, who also serves as president of the First Affirmative Financial
Network, said: "Not even the continuing market deterioration during 2001 and the tragic events of
September 11th could tarnish the enduring story of strong performance by socially and
environmentally responsible mutual funds. The prediction that the performance of socially screened
funds would plummet due to over-reliance on technology stocks is obviously wrong."
Alisa
Gravitz, executive director of Co-op America, a non-profit investor education organization,
commented: "In the wake of the terrible terrorist attacks, investors across the nation are taking
the time to reassess their personal values and goals. We saw evidence in late 2001 suggesting that
more and more investors want to make sure that their investments reflect their values. Another
encouraging sign for socially responsible investing in 2002: Lipper data for the first 11 months of
2001 show that there was a 91 percent drop in dollars that investors put into all mutual funds,
compared to a corresponding fall-off for socially responsible funds of only 36 percent. This
loyalty is a testament to the strength of socially screened mutual funds."
David Berge,
president of the Social Investment Forum, said: "The continued strong performance of screened
mutual funds means that more and more Americans can now take the time to explore a wider range of
social investment opportunities. We are already seeing more funds start to dedicate a portion of
their assets to community investments focused on job creation, housing, daycare and other important
social services. We are looking for more mutual funds to take up community investing in 2002 and
also a growing number of investors to go beyond screened funds by moving their bank deposits into
community development financial institutions."
HIGHLIGHTS OF NEW DATA ON SCREENED FUND
PERFORMANCE
The Forum assessed the performance of socially responsible mutual funds through the
end of 2001 by looking at comprehensive data from two sources: Lipper, Inc. and Morningstar.
See the Social Investment Forum's detailed chart on the Web at
http://www.socialinvest.org/areas/news/2001-Q4performance.htm.
Major findings of the
Forum's analysis were as follows:
Nearly two thirds of the full universe of social funds
earn highest ratings. Of the 46 socially screened funds with a three-year performance record
tracked by the Social Investment Forum,
(1) 29 -- nearly two-thirds (63 percent) -- received
the highest marks from either Lipper or Morningstar. According to the Forum, 21 (or 72 percent) of
the funds tracked received an "A" or "B" ranking from Lipper based on one- and/or three-year total
returns within their investment categories. A total of 20 screened funds earned either four- or
five-stars from Morningstar for at least three-year risk-adjusted performance. A number of the
funds earned top rankings from both organizations. Both the Lipper and Morningstar analyses are
based on time periods ending December 31, 2001.
81 percent of the largest socially responsible
funds get top ratings. Of the socially screened funds with more than $100 million in assets,
(2) 13 of 16 received top rankings from either or both Lipper and Morningstar. Nine earned an
"A" or "B" ranking from Lipper, based on one- and/or three-year total returns in their investment
categories. Eight received either four- or five-star ratings from Morningstar for three-year risk
adjusted performance
Top-performing socially screened funds found in key asset classes. Based
on data from Lipper and Morningstar socially and environmentally responsible mutual funds earned
top ratings in most major sectors. Socially screened funds were represented in global,
international, domestic equity, balanced and fixed-income categories.
Socially responsible
index continues to outperform the S&P 500 on a total returns basis for 10 years. For the 10-year
period ending December 31, 2001, total annualized returns for the Domini 400 Social Index (DSI 400)
showed a gain of 13.77 percent, while the S&P 500 rose 12.95 percent over the same period. For
2001, the DSI 400 benchmark tracked closely to the S&P 500, coming in close to two-tenths of one
percent lower for the 12-month period. The DSI 400 lost 12.07 percent during 2001, while the S&P
500 fell 11.88 percent during the same period.
ABOUT THE SOCIAL INVESTMENT FORUM
The
Social Investment Forum is a national nonprofit membership association dedicated to promoting the
concept, practice and growth of socially and environmentally responsible investing. The Forum's
membership includes over 500 social investment practitioners and institutions, including financial
advisors, analysts, portfolio managers, banks, mutual funds, researchers, foundations, community
development organizations and public educators. The Forum provides cutting-edge research on trends
in social investing, provides the nation's most comprehensive directory of practitioners in the
field, and publishes a monthly Mutual Fund Performance Chart on its website, located at-
http://www.socialinvest.org.
Background information about the Forum, including the text of
its Report on Responsible Investing Trends in the United States, may be found on the Web at
www.socialinvest.org. The Forum's Guide To Socially Responsible Investment Services is available to
the public at its website. For a paper copy of the Guide, send $2.00 to: Social Investment Forum,
1612 K Street NW, Suite 650, Washington, D.C. 20006.
ENVIRONMENTAL STEWARDSHIP FUNDED BY
INNOVATIVE MONEY MARKET ACCOUNT
Domini Social Investments and ShoreBank Expand Partnership
Domini Social Investments LLC, a New York-based socially responsible investment adviser, and
ShoreBank (formerly South Shore Bank), a Chicago-based community development bank, announced that
the Domini Money Market Account has been expanded to include ShoreBank Cleveland, and ShoreBank
Pacific, as well as ShoreBank's Chicago banking facilities. By depositing funds in these three
separately chartered banks, the Domini Money Market Account can provide up to $300,000 of FDIC
insurance per depositor.
In a unique arrangement between Domini and ShoreBank, the Domini
Money Market Account is fully invested in ShoreBank and all deposits are used in ShoreBank's
business of making community development loans in underserved communities. In addition, all loans
made by ShoreBank Pacific, the first and only environmental bank in the United States, are focused
on conservation-based small businesses.
"Our unique partnership with ShoreBank allows our
investors to put their money to work in ways that directly impact communities and the environment,"
said Amy Domini, founder and a managing principal of Domini Social Investments. "This partnership
has added a very important third leg to our product offerings: first, we screen our investments for
socially responsible business practices; second, we participate in shareholder advocacy to
encourage higher standards of corporate social responsibility; and third, we invest directly in
community economic development."
Since it's inception in 1995, the Domini Money Market
Account has become the single largest account at Shorebank, with over $60 million in assets
invested across ShoreBank's three affiliated banks. During that time period, ShoreBank's community
development loans have increased from $45 million to over $145 million. The loans are used to fund
small businesses, build affordable housing and create opportunity in low- and moderate-income urban
and rural areas.
"The Domini Money Market Account has been critical to our success in
making available community development loans that focus on the real needs of communities," said
Jean Pogge, Senior Vice President of ShoreBank. "Our partnership with Domini Social Investments,
our recent expansion into new markets, and the addition of environmental banking to our array of
investment services represent exciting new directions for ShoreBank."
In addition to the
Domini Money Market Account, ShoreBank also serves as the sub-adviser for the Domini Social Bond
Fund (Ticker: DSBFX), a socially and environmentally screened bond fund that devotes up to 10% of
its assets to community economic development. "As far as we know," said Ms. Domini, "this is the
only mutual fund that is managed by a Community Development Financial Institution. Our partnership
with ShoreBank underscores our commitment to pursue our shareholders' investment goals while
channeling critically needed capital to underserved communities."
Domini Social
Investments manages more than $1.5 billion in assets for individual and institutional investors
seeking to create positive change in society by integrating social and environmental factors into
their investment decisions. Its flagship fund, the Domini Social Equity Fund (Ticker: DSEFX), was
the first socially and environmentally screened index fund and is the nation's largest socially
responsible mutual fund. The Fund includes companies with positive records in community
involvement, the environment, diversity and employee relations, and excludes companies deriving
significant revenues from alcohol, tobacco, gambling, nuclear power and weapons contracting.
Only your Domini Money Market Account is insured.
|
|
|
Home | Archives
| Sponsors |
Links | Calendar
| Contact Us |
Advertising
| SRI News
MISSION
STATEMENT
The GreenMoney Journal encour-ages and promotes the awareness of socially
& environmentally responsible business, investing and consumer
resources in publications & online.
Our goal is to educate and empower individuals and businesses to make
informed financial decisions through aligning their personal, corporate
and financial principles.
“Responsibility from the Supermarket to the Stockmarket.”
The material presented in this news letter is for educational and
informa-tional purposes only. The GreenMoney Journal does not endorse
or recommend firms, products, funds or advertisers.
GreenMoney is a registered trademark.
Copyright 1995-2010 by the
GreenMoneyJournal ®
Green Money is a Registrated Trademark
of The GreenMoney Journal / Cliff Feigenbaum
|
|
|
|
