Dorsey Wright's Ranking of Socially Responsible Funds and ETFs
Includes Funds and ETFs with assets over $100 million

SRI Comment - Spotlight - Parnassus Core Equity Fund (PRILX)

The Parnassus Core Equity Fund (PRILX) takes the lead in score over the SRI universe and offers a competitive alternative to the Ariel Fund Investor Class (ARGFX), which has been the recent leader in the SRI space this year.  US equity funds like PRILX and ARGFX have dominated the equity landscape for the later part of 2014, and they appear to be set up to do the same as we head into the 2015 session.  Classic Non-US funds like the Domini International Social Equity Fund Class A (DOMAX) and the DFA International Social Core Equity Portfolio Ins (DSCLX) are scoring below the 2 score line, a sign of negative strength and technical weakness.  If their scores improve, then you can get back into the intentional landscape again, but not before their relative strength improves.  Fixed income funds continue to show strong relative scores with many options trading above the 3 score line.  In the stop position is the Calvert Bond Portfolio Class A (CSIBX), sporting a score in the 3.70 range, where the average score for a quality fixed income funds averages at a score of 2.47.  Calvert has other important relative leaders including their tax-free funds.  Other fixed income names to investigate are the Parnassus Fixed Income Fund (PRFIX) and the Ave Maria Bond Fund (AVEFX).  All in all, 2014 has given the SRI investor excellent allocation choices while also offering stiff competition to fund options outside the SRI universe.

 
High Strength, Low Risk
Fund Score > 3, Below average volatility
           
    Name DWA Fund Score DWA rRisk Score  
  Equity Funds And ETFs      
    Parnassus Core Equity Fund (PRILX) 5.86 0.95  
    Parnassus Mid Cap Fund (PARMX) 4.76 0.99  
    Ave Maria Rising Dividend Fund (AVEDX) 4.50 0.95  
    Calvert Balanced Portfolio Class A (CSIFX) 3.84 0.65  
    Legg Mason Investment Counsel Social Awareness Fun (SSIAX) 3.59 0.73  
    Pax World Balanced Individual Investor Class (PAXWX) 3.51 0.81  
    Calvert Moderate Allocation Fund Class A (CMAAX) 3.49 0.77  
    Calvert Conservative Allocation Fund Class A (CCLAX) 3.44 0.48  
  Bond Funds      
    Calvert Bond Portfolio Class A (CSIBX) 3.71 0.38  
    Calvert Tax-Free Bond Fund Class A (CTTLX) 3.44 0.53  
    Parnassus Fixed Income Fund (PRFIX) 3.14 0.31  
    Calvert Income Fund Class A (CFICX) 3.05 0.39  
    Ave Maria Bond Fund (AVEFX) 3.02 0.22  
    Domini Social Bond Fund Investor Class (DSBFX) 3.02 0.23  
           

 

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) 5.75 1.54  
    Pax World Small Cap Fund Individual Investor Class (PXSCX) 5.34 1.09  
    Parnassus Endeavor Fund (PARWX) 5.08 1.06  
    Parnassus Fund (PARNX) 4.87 1.36  
    Calvert Social Index Fund Class I (CISIX) 4.84 1.07  
    Pax World Growth Fund Individual Investor Class (PXWGX) 4.81 1.15  
    Neuberger Berman Socially Responsive Fund Investor (NBSRX) 4.74 1.13  
    Calvert Large Cap Value Fund Class A (CLVAX) 4.07 1.05  
    VALIC Company II Socially Responsible Fund (VCSRX) 4.05 1.02  
    Calvert Large Cap Core Portfolio Class A (CMIFX) 4.00 1.02  
    Vanguard FTSE Social Index Fund Institutional (VFTNX) 3.98 1.09  
    iShares MSCI USA ESG Select Scl Indx Fnd: NYSEARCA - KLD 3.95 1.03  
    iShares FTSE KLD 400 Social Idx Fd (ETF): NYSEARCA - DSI 3.83 1.01  
    Calvert Equity Portfolio Class A (CSIEX) 3.80 1.11  
    Domini Social Equity Fund Investor Class (DSEFX) 3.78 1.16  
    Walden Equity Fund (WSEFX) 3.77 1.02  
    Calvert Small Cap Fund Class A (CCVAX) 3.74 1.34  
    TIAA-CREF Social Choice Equity Fund Institutional (TISCX) 3.70 1.05  
    Ave Maria Growth Fund (AVEGX) 3.67 1.18  
    VALIC Company I Global Social Awareness Fund (VCSOX) 3.62 1.15  
    Calvert Capital Accumulation Fund Class A (CCAFX) 3.51 1.27  
    DFA U.S. Social Core Equity 2 (DFUEX) 3.28 1.18  
    City National Rochdale Socially Responsible Equity (AHSRX) 3.22 1.00  
    Parnassus Small Cap Fund (PARSX) 3.03 1.61  
           

 

Low Strength, Low Risk
Fund Score < 3, Below average volatility
           
    Name DWA Fund Score DWA rRisk Score  
  Equity Funds and ETFs      
    TIAA-CREF Social Choice Bond Fund Retail Class (TSBRX) 2.48 0.34  
  Bond Funds      
    Calvert Short Duration Income Fund Class A (CSDAX) 1.99 0.19  
    Calvert Ultra-Short Income Fund Class A (CULAX) 1.98 0.05  
    Calvert High Yield Bond Fund Class A (CYBAX) 1.92 0.44  
    Pax World High Yield Bond Fund Individual Investor (PAXHX) 1.12 0.45  
           

 

Low Strength, High Risk
Fund Score < 3, Above average volatility
           
    Name DWA Fund Score DWA rRisk Score  
  Ave Maria Catholic Values Fund (AVEMX) 2.64 1.23  
  Domini International Social Equity Fund Class A (DOMAX) 2.12 1.42  
  DFA Emerging Markets Social Core Portfolio (DFESX) 1.94 1.71  
  Calvert Global Water Fund Class A (CFWAX) 1.93 1.42  
  Pax World Global Environmental Markets Fund Instit (PGINX) 1.87 1.31  
  Calvert International Opportunities Fund Class A (CIOAX) 1.84 1.43  
  Appleseed Fund (APPLX) 1.73 1.12  
  Calvert International Equity Fund Class A (CWVGX) 1.67 1.28  
  Calvert Global Alternative Energy Fund Class A (CGAEX) 1.41 1.78  
  DFA CSTG&E International Social Core Equity Portfo (DFCCX) 1.31 1.52  
  DFA International Social Core Equity Portfolio Ins (DSCLX) 1.27 1.25  
  PowerShares WilderHill Clean Energy(ETF): NYSEARCA - PBW 1.20 2.94  
  Pax MSCI International ESG Index Fund Individual I (PXINX) 0.29 1.53  


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.
 

Disclosures: The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs.  Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions.  Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”).  However, such information has not been verified by Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein.  DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded).  Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.  Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products.  This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.

Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.    You should consider this strategy’s investment objectives, risks, charges and expenses before investing.  The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs.

Each investor should carefully consider the investment objectives, risks and expenses of any Exchange-Traded Fund ("ETF") prior to investing. Before investing in an ETF investors should obtain and carefully read the relevant prospectus and documents the issuer has filed with the SEC. ETF's may result in the layering of fees as ETF's impose their own advisory and other fees. To obtain more complete information about the product the documents are publicly available for free via EDGAR on the SEC website (http://www.sec.gov).
 

Benjamin Jones is a senior analyst and Steven Raymond a vice president for Dorsey, Wright & Associates, an independent and privately owned registered investment advisory firm based in Richmond, Va.

The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs.  Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions.  Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products.