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January 14, 2005
2004 Socially Responsible Investment Fund Performance
by William Baue
Of the broadly-screened SRI mutual fund tracked by SocialFunds.com, two earned over 20 percent
returns, and six others joined them in outperforming more than 80 percent of their SRI and non-SRI
peer funds.
SocialFunds.com --
Two of the broadly-screened socially responsible investment (SRI) mutual funds tracked by
SocialFunds.com generated one-year returns in 2004 that broke above the 20 percent barrier.
Broadly-screened funds apply a wide range of social and environmental criteria to the companies
included and excluded from their portfolios, as compared to mainstream funds that apply no such
screens or single-screen SRI funds.
Comparing performance to peer funds (both SRI and
non-SRI) with similar investing goals and styles, these two funds joined six others in ranking
below the 20th percentile--in other words, performing better than 80 percent of their peers. While
returns are clearly a useful way to judge mutual fund performance, percentile
rankings allow apples-to-apples comparisons of how funds fare in relation to like funds across
the market, not just in relation to other SRI funds.
 All the statistics quoted in this article are based on
data provided by Thomson Financial Network covering the one-year period ending December 31, 2004,
unless otherwise noted.
The Pax World Growth Fund (ticker: PXWGX) topped our list
performance-wise, generating 22.04 percent returns over the past year to rank in the 9th percentile
compared to its peer domestic equity growth funds. The Pax World Growth Fund's top three holdings
are Autodesk (ADSK), Urban Outfitters (URBN), and
Cognizant Technology Solutions (CTSH).
Unsurprisingly, the
other fund to break into the 20s was the Ariel Fund (ARGFX), a perennial top
performer. It generated 21.97 percent returns over 2004 to rank in the 19th percentile compared to
its peer domestic equity growth funds. Such performance is no anomaly; the Ariel Fund's annualized
returns over the past three years (13.98 percent), five years (16.84 percent), and ten years (16.24
percent) all place it in the top quarter percentile-wise compared to its peers.
The top
three holdings in the Ariel Fund are Baxter International (BXL), Northern Trust (NTRS), and MBIA (MBI).
The
highest-ranking SRI fund track by SocialFunds.com percentile-wise was the Pax World Balanced Fund
(PAXWX),
which ranked in the 3rd percentile compared to its peer domestic balanced funds with 13.39 percent
returns.
Two SRI funds we track ranked in the 8th percentile compared to their peers: the
Calvert Large Cap Growth Fund (CLGAX), which generated 16.67
percent returns, and the Sierra Club Stock Fund (SCFXS), a balanced growth
fund that earned 16.23 percent returns.
The best-performing SRI fixed income fund
percentile-wise was the Calvert Social Bond (CSIBX), which ranked in the
12th percentile with 5.94 percent returns.
Two other SRI funds tracked by
SocialFunds.com broke the 20th percentile barrier: the IPS New Frontier Fund (IPSFX), which garnered 16.25
percent returns to rank in the 18th percentile, and the Aquinas Value Fund (AQEIX), which earned 15.93
percent returns to rank in the 19th percentile.
©
SRI World Group, Inc. All Rights Reserved.
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