Financial Advisor magazine has partnered with investment research firm Dorsey, Wright & Associates to identify socially responsible funds that also demonstrate technical leadership.
July 2013 spotlight - Parnassus Equity Income Fund (PRILX)
Due to recent market turbulence, you may desire to lower the risk of your portfolio while still maintaining exposure to assets with strong relative strength. A fund that stands out on these standards is the Parnassus Equity Income Fund (PRILX), which holds a leading Fund Score at 4.68, while also possessing a relative risk (rRisk) rating at .90, which is below the relative risk of the general stock market.  In the fixed-income category, the Ava Maria Bond Fund (AVEFX) holds a superior relative strength score, not only against other fixed-income assets in this genre but also against any type of fixed income. Its Fund Score is trading more than one full point higher versus the average score of all the fixed-income funds available to investors. Large movements in Fund Score include the Calvert Bond (CSIBX), which has moved down over one point in score recently. On the equity side, the Parnassus Small Cap Fund (PARNX) has moved down in Fund Score close to .75 points since last month's reading.

Figures in the charts below are as of June 25, 2013.

High Strength, Low Risk
Fund Score > 3, Below average volatility
    Name DWA Fund Score DWA rRisk Score  
  Equity Funds And ETFs      
    Parnassus Equity Income Fund Class Institutio (PRILX) 4.68 0.90  
    Calvert Large Cap Core Portfolio Class A (CMIFX) 4.66 0.93  
    Ave Maria Rising Dividend Fund (AVEDX) 4.58 0.93  
    iShares FTSE KLD 400 Social Idx Fd (ETF): NYS - DSI 3.86 0.99  
    Legg Mason Investment Counsel Social Awarenes (SSIAX) 3.19 0.72  
    Appleseed (APPLX) 3.17 0.88  
    Calvert Moderate Allocation Fund Class A (CMAAX) 3.12 0.69  
    Calvert Balanced Portfolio Class A (CSIFX) 3.03 0.57  
  Bond Funds      
    Ave Maria Bond Fund (AVEFX) 3.28 0.19  
    Calvert Ultra-Short Income Fund Class A (CULAX) 3.08 0.05  
    Calvert Short Duration Income Fund Class A (CSDAX) 3.02 0.13  


High Strength, High Risk
Fund Score > 3, Above average volatility
    Name DWA Fund Score DWA rRisk Score  
  Equity Funds and ETFs      
    Ariel Fund Investor Class (ARGFX) 5.35 1.64  
    Ave Maria Growth Fund (AVEGX) 4.96 1.17  
    Parnassus Workplace Fund (PARWX) 4.85 1.20  
    Neuberger Berman Socially Responsive Fund Inv (NBSRX) 4.79 1.10  
    TIAA-CREF Social Choice Equity Fund Instituti (TISCX) 4.72 1.04  
    Parnassus Mid Cap Fund (PARMX) 4.19 1.07  
    Domini International Social Equity Fund Class (DOMAX) 4.15 1.39  
    Calvert Global Water Fund Class A (CFWAX) 4.11 1.17  
    Ave Maria Catholic Values Fund (AVEMX) 4.10 1.20  
    Calvert Small Cap Fund Class A (CCVAX) 4.04 1.33  
    Parnassus Fund (PARNX) 3.93 1.45  
    Vanguard FTSE Social Index Fund Institutional (VFTNX) 3.91 1.07  
    PowerShares WilderHill Clean Energy(ETF): NYS - PBW 3.90 2.30  
    Calvert Capital Accumulation Fund Class A (CCAFX) 3.82 1.37  
    VALIC Company II Socially Responsible Fund (VCSRX) 3.79 1.03  
    Calvert Social Index Fund Class I (CISIX) 3.75 1.02  
    DFA U.S. Social Core Equity 2 (DFUEX) 3.72 1.18  
    iShares MSCI USA ESG Select Scl Indx Fnd: NYS - KLD 3.49 1.03  
    CNI Charter Funds Socially Responsible Equity (AHSRX) 3.44 1.01  
    Walden Equity Fund (WSEFX) 3.44 1.01  
    VALIC Company I Global Social Awareness Fund (VCSOX) 3.38 1.14  
    Domini Social Equity Fund Investor Class (DSEFX) 3.20 1.06  
    Calvert International Equity Fund Class A (CWVGX) 3.16 1.26  
    Calvert Equity Portfolio Class A (CSIEX) 3.13 1.08  
    Parnassus Small Cap Fund (PARSX) 3.04 1.49  


Low Strength, Low Risk
Fund Score < 3, Below average volatility
    Name DWA Fund Score DWA rRisk Score  
  Equity Funds and ETFs      
    Pax World Balanced Individual Investor Class (PAXWX) 2.71 0.88  
  Bond Funds      
    Calvert Income Fund Class A (CFICX) 2.77 0.25  
    Calvert Bond Portfolio Class A (CSIBX) 2.36 0.24  
    Domini Social Bond Fund Investor Class (DSBFX) 1.98 0.15  
    Parnassus Fixed Income Fund (PRFIX) 1.73 0.26  
    Calvert Tax-Free Bond Fund Class A (CTTLX) 1.55 0.34  
    Calvert Long-Term Income Fund Class A (CLDAX) 1.29 0.40  


Low Strength, High Risk
Fund Score < 3, Above average volatility
    Name DWA Fund Score DWA rRisk Score  
  Equity Funds and ETFs      
    DFA Emerging Markets Social Core Portfolio (DFESX) 2.00 1.6  

  DWA Fund Score: The DWA Fund score ranks the technical strength on a scale of 0 through 6 using an equation based on price trending and relative strength.  Funds with scores above 3 are considered by Dorsey Wright to be “investment grade”.   Funds with scores close to 6 are “market dominant."
  DWA rRisk Score: The DWA rRisk score measures the risk of the group on a relative basis. The calculation uses the 3 year Standard Deviation average of the group or fund divided by the Standard Deviation of the Cap Weighted S&P 500 Equity Index. Ratios higher than 1 demonstrate higher risk than the market benchmark and ratios less than 1 demonstrate lower risk than the market benchmark.

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