Ten New Green Mutual Funds
As 2008 begins, mutual fund investors have ten new opportunities to make money and make a difference. The US, Europe, Asia, and the UK figure prominently in the following selection of new or recent portfolios, as do green, sustainable, and profitable companies.
Subscribe to Green Money Below, Domini, Calvert, Sustainable Asset Management, Winslow, Pax World, and MMA Praxis offer a wide selection of mutual funds with goals and strategies that blend opportunity and social responsibility both here and abroad. These funds will be added to our mutual fund chart (in our print version only) once they have a year of financial performance.
DOMINI FUNDS -
1. Domini PacAsia Social Equity Fund
Amy Domini (Fund founder and CEO): "We expect to have a positive impact, as we already do in the U.S. and Europe, both by applying standards to our investment choices and, when we can, by engaging companies in direct dialogue, encouraging the best practices and challenging the worst."
Investment Objective: The PacAsia Social Equity Fund seeks to provide shareholders with long-term total return while challenging the notion that negative social and environment outcomes are unavoidable in emerging markets. The Fund was launched in December 2006.
Investment Strategies: Fundamental principles of this Fund are the promotion of human dignity and the enrichment of the natural environment. The Fund invests primarily in stocks of large and mid-sized Asia-Pacific companies subject to Domini standards. Wellington Management Company, LLP, submanager, seeks value using a diversified quantitative stock selection approach, while managing risk through portfolio construction.
Top Ten Country Allocations [as of 12/31/07]: Japan (41.72%), Australia (11.28%), Hong Kong (8.41%), South Korea (8.10%), Taiwan (7.39%), Malaysia (2.67%), Singapore (2.63%), New Zealand (2.10%), China (1.98%), India (1.78%)
Top Ten Holdings [as of 12/31/07]: Honda Motor Co Ltd (2.77%), Nintendo Company Ltd (2.21%), Nippon Telegraph & Telephone (2.09%), Fuji Film Holdings Corp (1.80%), Au Optronics (1.75%), Sony Corporation (1.72%), Sekisui House Ltd (1.70%), Orix Corporation (1.67%), Nippon Express Co Ltd (1.60%), QBE Insurance Group Ltd (1.59%)
2. Domini European PacAsia Social Equity Fund
Amy Domini: "The Domini European PacAsia Social Equity Fund offers a single international solution for investors who understand the importance and impact of their investment decisions."
Investment Objective: The Domini European PacAsia Social Equity Fund seeks to provide shareholders with long-term total return. The fund was launched in December 2006.
Investment Strategies: The Fund invests primarily in stocks of European and Asia-Pacific companies subject to Domini Social Investments' social and environmental standards. Wellington Management Company, LLP, the Fund's submanager, seeks value using a diversified quantitative selection.
Top Ten Country Allocations [as of 12/31/07]: Japan (18.82%), United Kingdom (18.37%), France (9.32%), Germany (7.45%), Netherlands (6.70%), Spain (4.93%), Australia (4.28%), Norway (3.64%), Finland (3.31%), Hong Kong (2.63%), Switzerland (2.55%)
Top Ten Holdings [as of 12/31/07]: Vodafone Group Plc (2.83%), Sanofi-Aventis (2.48%), Statoil Hydro ASA (2.17%), France Telecom SA (2.00%), Nokie (1.93%), Honda Motor Co Ltd (1.80%), Banco Santander SA (1.72%), Royal Bank of Scotland Group (1.71%), Gas Natural SDG SA (1.64%), Allianz SE- REG (1.53%)
For more information go to- http://www.domini.com
SUSTAINABLE ASSET MANAGEMENT USA FUNDS -
3. SAM Sustainable Water USA Fund
With the tripling of world population and doubling of per capita water consumption in the past 75 years, UNESCO predicts a major fall in water resources by 2025. The SAM Sustainable Water Fund invests in companies proactively meeting this challenge.
Investment Objective: The SAM Sustainable Water Fund globally invests in companies offering products and services along the entire water value chain. The focus is on four segments or clusters: distribution and management, advanced water treatment, demand-side efficiency and water and food. The Fund has a balanced risk profile and was launched in October 2007.
Investment Strategies: The Fund investment process seeks the most attractive companies among water equities. The first step is to discover trends that have a significant influence on the water industry, specifically companies that demonstrate a correlation to the investment theme and stand to benefit most from the trends highlighted. Through analysis and a proprietary model, which provides a quantitative assessment of financial and sustainability criteria, SAM evaluates the attractiveness of the investment and the potential of the individual companies.
Top Country Allocations [as of 12/31/07]: U.S. (41.4%), France (13.9%), Switzerland (6.4%), Netherlands (5.5%), Hong Kong (4.7%), Canada (4.3%), United Kingdom (3.5%), Spain (2.4%), Germany (2.3%), Austria (2.1%).
Top Ten Holdings [as of 12/31/07]: Suez SA (6.2%), ITT Industries (5.9%), Veolia Environnement (5.6%), Danaher Corp (5.4%), Thermo-Fisher Scientific Inc (4.0%), Geberit Ag-Reg (3.7%), CFD Gsinlo Roper Industries Inc. (3.7%), Wavin NV (2.8%), Chaoda Modern Agricult Hltd. (2.6%), Ecolab Inc. (2.3%).
4. SAM Sustainable Climate USA Fund
The reality of climate change has been established by years of credible research and data. It is clear that we cannot prevent climate change but only limit it and its impacts. It is also clear that burning fossil fuels is a direct source of greenhouse gas emissions, especially CO2.
Investment Objectives: The SAM Sustainable Climate Fund invests globally in companies offering products and services that reduce or delay climate change, somehow help to alleviate the consequences of global warming or companies that benefit from rebuilding the infrastructure after a disaster, e.g. hurricane, flood, etc.
Investment Strategies: The Fund employs a bottom-up investment process to identify companies that are eligible for investment. The initial step in the process focuses on identifying business opportunities associated with the climate theme. Candidates are then screened to identify those companies that SAM believes are best positioned to capitalize on these business opportunities. The Fund was launched in October 2007.
Top Country Allocations [as of 12/31/07]: U.S. (35.8%), Germany (10.7%), Denmark (7.1%), Spain (4.9%), Finland (4.6%), Canada (3.3%), Cayman Islands (3.3%), Austria (3.1%), Brazil (2.8%), Switzerland (2.7%).
Top Ten Holdings [as of 12/31/07]: Iberdrola SA (4.2%), Greentech Energy Systems (3.3%), Trina Solar Limited (3.3%), Q-Cells AG (3.1%), Verbund AG (3.1%), Emerson Electric Co (3.0%), Jacobs Engineering Group Inc (3.0%), Quanta Services Inc (2.9%), Siemens AG (2.7%), Intermap Technologies Corp (2.6%).
Sustainable Asset Management, USA is affiliated with Robeco Investment Management. For more information on the funds go to- http://www.robecoinvest.com
CALVERT FUNDS -
5. Global Alternative Energy Fund
An extensive survey conducted for Calvert by Opinion Research Corporation found that a significant (75%) number of U.S. investors seek opportunities to invest in sustainable alternative energy.
"We have listened to financial professionals and our shareholders, many of whom are interested in global alternative energy, and believe we have developed a fund that will meet their investment strategy needs," said Steve Falci, Calvert's Chief Investment Officer, Equities.
Investment Objective: The Calvert Alternative Energy Fund sseeks long-term growth through investment in (U.S. and non-U.S.) companies involved in alternative energy that meet investment and social criteria. These include renewable energy sources (including solar, wind, geothermal or biofuel), and technologies and services. The Fund was launched in May 2007.
Investment Strategies: The all-market-cap, alternative energy sector mutual Fund is managed by KBC Asset Management International, Ltd. (KBC) of Dublin, Ireland. At least 80% of net assets will usually be invested in companies whose main or significant business is alternative energy.
Top Ten Holdings [as of 12/31/07]: Gamesa Corp Tecno (5.34%), Vestas Wind Systems (5.20%), Sunpower Corp (4.49%), Acciona Sa (4.16%), Renewable Energy (4.09%), FPL Group Inc (4.08%), Johnson Matthey (3.73%), Suntech Power Hldgs Co Ltd (3.72%), Ormat Technologies Inc (3.50%), Memc Electr Matls Inc (3.42%).
Top Ten Country Allocations [as of 12/31/07]: USA (28.4%), Spain (17.8%), Germany (13.93%), United Kingdom (6.96%), Denmark (6.45%), France (4.45%), Norway (4.32%), China (People's Republic) (3.93%), Japan (2.8%), Austria (2.75%).
6. Calvert International Opportunities Fund
On May 31, 2007 Calvert launched this Fund to meet demand for equities meeting financial and environmental, social, and governance (ESG) criteria. London-based F&C Management Limited subadvises the Fund.
Investment Objective: The Calvert International Opportunities Fund seeks to provide long-term capital appreciation by investing primarily in non-U.S. small-cap and mid-cap stocks in both developed countries and emerging markets. The Fund may invest up to 20% of its assets in emerging markets and no more than 10% in U.S. stocks.
Investment Strategies: F&C Management Limited uses a primarily bottom-up strategy of fundamental analysis of a broad universe of small- and mid-cap stocks across geographic regions. Investment philosophy includes positive social and environment positions combined with rigorous financial analysis.
Top Ten Holdings [as of 12/31/07]: Adidas Ag (1.89%), Acciona SA (1.82%), Aisin Seiki (1.81%), Fanuc (1.76%), Ulvac Inc (1.72%), Shimano Inc (1.71%), Shiseido Co (1.68%), Yara International (1.68%), Prosafe SE (1.56%), Asahi Pretec (1.55%).
Top Ten Country Allocations [as of 12/31/07]: Japan (18.52%), United Kingdom (10.21%), Germany (9.01%), USA (7.15%), Australia (6.89%), France (5.99%), Norway (5.87%), Spain (4.26%), Brazil (3.07%), Denmark (2.95%).
For more information go to- http://www.calvert.com
WINSLOW FUNDS -
7. Winslow Green Solutions Fund
In November 2007, Winslow launched the Winslow Green Solutions Fund, which joins the Winslow Green Growth Fund in offering the opportunity to invest in green business, looking for leaders in established green markets such as solar and wind energy, natural and organic foods, and energy conservation technologies.
Mathew Patsky (Fund Manager): "Concepts like clean energy and natural foods are no longer just exciting ideas for the future - they are driving legitimate, multi-billion dollar growth markets today. And we see the potential for growth”¦ to accelerate even further."
Investment Goals: The Winslow Green Solutions Fund seeks capital appreciation through investing in companies that provide green solutions.
Investment Strategy: The Fund invests globally in companies of varying sizes that provide green solutions, i.e., products or services that reduce resource consumption, decrease pollution, or contribute to sustainable nutrition and health. Winslow seeks to ensure that all companies in the portfolio derive primary revenue from green products or services.
Top Ten Holdings [as of 12/31/07]: First Solar Inc (5.78%), Vestas Wind Systems (3.77%), Borg Warner (3.48%), First Group PLC (3.33%), Comverge Inc (3.02%), Ormat Technologies (2.97%), Itron (2.97%), Renewable Energy Corp. (2.95%), Telvent Git S.A. (2.60%), Whole Foods Market (2.56%).
Top Country Allocations [as of 12/31/07]: US (67.92%), Europe (16.26%), Canada (4.04%), Asia (3.81%), Latin America (0.24%).
For more information go to- http://www.winslowgreen.com
PAX WORLD FUNDS -
8. Pax World Value Fund
Pax currently offers a Balanced Fund, a Growth Fund and a High Yield Bond Fund. In November 2007 the newly launched Value Fund rounded out its offerings by exploring new US and global companies. Also late last year Pax acquired the long standing Women's Equity Fund.
Sujatha R. Avutu (Fund Manager): "Pax World Value Fund fills in an important style niche for investors”¦ We believe - and we think the evidence shows - that a strong sensitivity to valuation and price will benefit an investment portfolio over the long run."
Investment Objectives: The Pax World Value Fund seeks long-term capital appreciation. The manager seeks to generate capital appreciation with moderate risk. The fund focuses on high quality businesses that are fundamentally attractive with "good earnings in good industries."
Investment Strategies: The Fund invests in large capitalization equity securities (such as common stocks, depository receipts, rights and warrants, preferred stocks and securities convertible into common or preferred stocks) of companies that the adviser believes are undervalued relative to their future growth prospects.
Top Ten Holdings [as of 12/31/07]: Whiting Petroleum Corp. (3.8%), BP PLC, ADR (3.8%), Energy East Corp. (3.3%), Kraft Food, Inc., Class A (2.8%), Boston Private Financial Holdings, Inc. (2.7%), Bright Horizons Family Solutions, Inc. (2.4%), Saks, Inc. (2.3%), Bank of America Corp. (2.2%), Legg Mason, Inc. (2.2%), Ameriprise Financial, Inc. (2.1%).
Asset Allocations [as of 12/31/07]: U.S. Stocks (78.3%), Foreign Stocks (17.8%), Cash & Equivalents (3.2%), ETF (0.7%).
For more information go to- http://www.paxworld.com
MENNONITE MUTUAL AID (MMA) PRAXIS FUNDS -
9. MMA Small Cap Fund
Rooted in the Anabaptist faith tradition, MMA offers practical stewardship education and tools to individuals, congregations, and organizations.
MMA is committed to a holistic approach toward stewardship, recognizing that people nurture all aspects of life - health, time, talents, relationships as well as money - in tune with their faith and values.
Investment Objective: The MMA Small Cap Fund seek capital appreciation through a portfolio of primarily smaller U.S company stocks, while incorporating socially responsible investing criteria.
Investment Strategy: The Fund invests primarily in smaller companies, with a balance between growth and value styles. It holds stocks of companies having higher-than-average growth in revenue and/or earnings and potential for above-average capital appreciation. The Fund also holds stocks of high quality companies based on high profitability, strong balance sheets, and prominent market share positions. The Fund was launched in May 2007.
Top Ten Holdings [as of 12/31/07]: Northern Instl Gov Select (6.61%), Core Laboratories (1.86%), Rofin-Sinar Tech., Inc (1.80%), Nuance Communications, Inc (1.75%), Nordson Corp (1.72%), Quintana Maritime Ltd (1.70%), Atwood Oceanics (1.70%), Kirby Group (1.69%), Clarcor Inc. (1.66%), Meridian Bioscience Inc. (1.63%).
10. MMA Growth Index Fund
Investment Goals: The MMA Growth Index Fund seek capital appreciation through stocks intended to parallel the investment performance of the U.S. large cap growth equities market, while incorporating socially responsible investing criteria.
Investment Strategies: The Fund features a growth-oriented investment style, investing primarily in equity securities with "indexing" techniques to approximate the performance of the internal MMA Growth Index, while incorporating socially responsible investment criteria. The fund attempts to minimize risk through diversification. The Fund was launched in May 2007.
Top Ten Holdings [as of 12/31/07]: Microsoft Corp (4.86%), Apple Inc (2.79%), Cisco Systems, Inc (2.66%), Google Inc - Cl A (2.62%), Intel Corp (2.48%), IBM Corp (2.34%), Hewlett-Packard Co (2.14%), Pepsico Inc (1.98%), Wal-Mart Stores, Inc (1.98%), Procter & Gamble (1.86%), Oracle Corp (1.50%).
For more information go to- http://www.mmapraxis.com
Look for additional information on newly launched funds in future issues including the Spectra Green Fund, and the Guinness Atkisson Alternative Energy Fund. If there are other mutual funds you'd like us to profile please send us the information.