|
June 14, 2001
Top Tenners - Social Mutual Funds that Sing
by Mark Thomsen
Four social mutual funds are in the top ten percent for financial performance for a one-year period
when compared to similar funds.
SocialFunds.com --
While Pavorotti, Carreras and Domingo may have cornered the opera market, there are four top
tenners among socially responsible mutual funds that have beaten at least 90 percent of their peers
over a one-year period. All figures quoted in this article are as of May 31.
The lead in this quartet is the Calvert Social Investment Fund
Bond Portfolio (ticker: CSIBX). With a one-year return of 16.7 percent, it is in the 2nd
percentile when compared to peers. The Social Bond Fund is one of Bethesda, Maryland-based Calvert
Group's family of funds, and whose peer group is the Lipper Corporate Debt A Rated universe. The
Calvert Group has been a leader in offering investors a range of social mutual funds.
Social Bond Fund Portfolio Manager Greg Habeeb says the fund's recent success is partially due
to a corporate bond rally that began after the Federal Reserve started lowering rates in January.
The rally continued despite a flood of new corporate bonds from issuers taking advantage of lower
rates.
"By the end of 2000, we reduced our mortgage exposure to 10 to 12 percent and
bought corporate bonds at much, much cheaper levels than they had been even six months earlier,"
said Habeeb. "So due to the fact that we were heavier than normal in corporates coming into the
year and that we got involved in a lot of issues that were cheaply priced, we benefited."
The second tenner is the Ariel Appreciation Fund
(CAAPX), a mid-cap blend fund that places in the top 5th percentile with a one-year return of 32.1
percent. Ariel Appreciation is offered by Ariel Capital Management, Inc., which is headquartered
in Chicago.
Ariel also offers the Ariel Fund (ARGFX), a
small-cap blend fund that just missed placing in the top ten percent of its class, but narrowly
beat Ariel Appreciation with a one-year return of 32.5 percent.
John Miller, Assistant
Portfolio Manager at Ariel, cites two reasons for the success of the Ariel Fund over the last year.
One is that many of its high-quality, undervalued holdings have come back into favor with other
investors. The other can partially be attributed to good stock picking.
"We benefited
from certain buyouts including Central Newspapers by Gannett (GCI), at double the price, and
investments including International Game Technology (IGT). IGT has seen its stock price increase
130% in the last twelve-months," said Miller.
Ariel Fund has recently added Markel
Corporation (MKL) and Anixter International (AXE) to its portfolio. Markel is a specialty insurer
serving a variety of niches in the property and casualty industry, and Anixter is a leading
value-added distributor of communications and specialty wire and cable products.
The
third tenner is Meyers Pride
Value Fund (MYPVX), which is a multi-cap value fund. Its one-year return of 20.71 percent puts
it in the top five percent when compared to similar funds. It is offered by San Diego-based Meyers
Investment Trust.
Although a small fund at $11.1 million in assets, Meyer Pride has
five-star rating from Morningstar. Its top three holdings are Cendant (CD), UNUMProvident Corp.
(UNM), and Microsoft (MSFT).
The fourth tenner is the New Alternatives Fund (NALFX),
a value-oriented fund that places a special emphasis on alternative energy stocks. At 46.5
percent, it was tops among social funds for a one-year return. When compared to its peers, it
placed in the tenth percentile.
New Alternatives is managed by the father and son team of
Maurice and David Schoenwald. The fund has been authorized recently to invest in foreign equities.
According to Maurice Schoenwald, two foreign companies the fund has taken positions in are Global
Thermal Electric Inc., a Canadian firm with a promising fuel cell product, and Pacific Hydro, an
Australian hydroelectric and wind power company.
The senior Schoenwald believes the strict
screening used for New Alternatives sets it apart from other social funds and makes it "the
greenest of funds."
"We have never invested in alcohol, tobacco, major military items,
coal, oil, atomic energy, companies that discriminate against anyone, and do not have investments
in companies that test products on animals," says Schoenwald. "We expect to have every investment
in companies that do something positive for the environment."
©
SRI World Group, Inc. All Rights Reserved.
Top
|
