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Archive for August, 2008

Listed below are standout SRI funds that I feel are well positioned to gain from the current economic environment.  These mutual funds and ETFs are grouped into different categories that reflect their holdings, strategy, and geographic region.  I also include categories that are unique to responsible investing such as environmental activism, humanitarianism, community development, and alternative energy.  With over $2.71 trillion is assets subject to social criteria and over 260 socially monitored funds, it can be difficult to navigate all the options out there. 

I’ve picked the following funds based on a number of fundamental criteria such as management track record, MPT statistics, and industry outlook.  However, the “niche” nature of each SRI sub-categories must be taken with a grain of salt due to the lack of competition.  The youthful nature of many funds in this sector also hiders forecasting. 

An important litmus test for any “alternative fund” requires determining if management has jumped on the “green bandwagon” for short-run gain.  Unfortunately, this last quarter has seen a number of self proclaimed SRI funds mislead investors.  To ensure these imitation funds don’t show up on my list, I’ve dug into each fund’s holdings to confirm consistency with the fund strategy.  Ultimately, I’m looking for funds that demonstrate a long-run commitment to well articulated objectives that are consistent with socially responsible investing.        

These “top picks” are not a static snapshot of the current SRI industry.  Rather, it is an evolving list that I hope to refine over time.  I welcome suggestions and recommendations.

Alternative Energy/ Resource

  • PowerShares Wilderhill Clean Energy Portfolio Fund (PBW)
  • Van Eck Global Alternative Energy (GEX)
  • PowerShares WilderHill Progressive Energy Portfolio (PUW)

Global/International

  • Calvert International Opportunities Fund (CIOAX)

Fixed income (Bonds)

  • Calvert Social Investment Bond A (CSIBX)
  • AHA Full Maturity Fixed Income Fund – Institutional Class (AHFMX)
  • AHA Limited Maturity Fixed Income Fund – Institutional Class (AHLFX)

Equity Large Cap.

  • Calvert Large Cap Growth I (CLCIX)
  • Pax World Growth (PXWGX)
  • MMA Praxis Growth Index Fund A (MGNDX)

Balanced Funds

  • Walden Social Balanced Fund (WSBFX)
  • Calvert Social Investment Equity Fund (CSIEX )
  • Pax World Balanced (PAXWX)

Environmental

  • Winslow Green Growth (WGGFX)
  • Portfolio 21 (PORTX)

Technology

  • Clean Edge U.S. Liquid Series Index Fund (QCLN)
  • PowerShares Cleantech Portfolio (PZD)

Religious Funds

  • Guide Stone Int’l Equity GS4 (GIEZX)
  • Amana Trust Growth (AMAGX)
  • Amana Trust Income (AMANX)
  • New Covenant Funds (NCGFX)
  • Ave Maria Mutual Funds (AVEGX)
  • LKCM Aquinas Fixed Income (AQFIX)
  • LKCM Aquinas Value (AQEIX)

Copyright © 2008 David van der Roest

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