Non Toxic Vision

Socially responsible investments

Since quite some time I am looking for socially responsible funds and I found a great article written by Russel Kinnel for Morningstar. In his article he mentions 4 funds and their strategy, which I would like to share with you. He also points out that "... the twin goals of doing well (in terms of total returns) and doing good (in terms of an intended social impact) are largely unrelated...".
The below mentioned funds are four of the best socially responsible funds from the standpoint of their prospects for returns, meaning that you still have to do your legwork, however the information posted might be very helpful.

Amana Trust Growth (AMAGX)
Social screening: The fund is run according to Islamic principles, and it excludes companies that receive 5% or more of their revenue from products excluded under Muslim law such as alcohol, tobacco, pork, gambling, and borrowing or lending money.

Manager and strategy: Nicholas Kaiser looks for companies with strong earnings growth and low valuations. A strong run of performance, boosted by the ban on bank stocks, has led to growth in assets and, in turn, a drop in expenses to a more reasonable 1.29%. The fund's long-term returns over 15 years are well ahead of its category peers. While avoiding banks helped recently, that long-term success clearly owes more to Kaiser's stock selection.

Pax World Balanced (PAXWX)
Social screening: Pax World evaluates companies based on criteria related to the environment, workplace conditions, corporate governance, product integrity, and community development. They are shareholder activists who take steps to advance those priorities. On the downside, the firm got in trouble for failing to enforce its screens at two funds other than this one. New management came in and significantly ramped up compliance efforts.

Manager and strategy: Chris Brown tends to have more in stocks than most moderate-allocation managers. He's also biased toward mid-caps and foreign stocks and leans on shorter-term debt on the bond side. Overall, he's produced strong results, yet 2008 was a disappointment because of a big energy bet as well as a hefty equity stake and a big slug of foreign stocks.

Domini Social Equity (DSEFX)
Social screening: Domini has rigorous screens that exclude alcohol, tobacco, firearms, gambling, nuclear power, and weapons contracting. The firm favors companies with strong records on environmental issues, workplace diversity, and employee relations.

Manager and strategy: Wellington took over in late 2006. Unfortunately, returns remained pedestrian under manager Mammen Chally, but two years is a short time to measure and I'm optimistic that Wellington's skill will win the day.

Vanguard FTSE Social Index (VFTSX)
Social screening: This fund has tracked the FTSE4Good U.S. Select Index since 2005. The index applies environmental, diversity, workplace, and human rights social screens, and it excludes alcohol and tobacco.

Strategy: It's a straightforward index fund, but returns were hurt in part by a big weighting in financials. However, past returns don't mean that much for index funds. Index funds are mostly about costs, and this one has very low costs.

New great reclaimed jewelry

The whimsy™ interchangeable bead rings are made entirely of reclaimed sterling silver, 14-karat gold and gemstones. Because mining is one of the dirtiest industries in the world, this is a very thoughtful way of stopping the mining madness (for more information and stats on the incredible environmental devastation wrought by mining, visit www.NoDirtyGold.org)

It is important to note that the sterling silver, 14-karat gold and stones that are used in the production of these rings is not post-industrial waste (used in various manufacturing processes and then sold by large companies) but is actually what is considered “dormant” material. That simply means that the metals/stones have already been mined and are dormant somewhere (think about broken chains or earrings without mates that are sold for scrap). This is an important distinction, because the use of dormant materials does not involve further mining. Also, the use of the glass beads, while a manufactured process, is less invasive than gem mining. So substituting the glass bead for a mined gem is a much more ecologically sound choice.
For more information go to: www.whimseyworldwide.com

Green socialnetwork

Thanks to Victor, who posted a comment on my last entry, we now know about a new green socialnetwork: LayZGreenPeople, which was born out of a desire to get more people involved in improving our environment.  Tree-huggers, corporations and the government have started to take action, but they can't save the Planet alone.  Each of us has to do our part.

Most of us are far too busy to make major changes to our lifestyle.  We’re “LayZ Green People”.   We will never have time to research the latest organic hemp clothing or biodegradable detergent to buy.  But we can all take small actions that don't require time or money. Unplug your phone charger at night.  Turn off the tap while brushing your teeth.  Ask hotel housekeeping to keep the same linens on your bed.  It doesn't take much.  And imagine if millions of us agreed to do the same action, together?  

Join and make your voice heard and connect with follow green-thinkers.

(the above mentioned entry was taken off the "about us" section of www.layzgreenpeople.com)