Financial Advisor magazine has partnered with investment research firm Dorsey, Wright & Associates to identify socially responsible funds that also demonstrate technical leadership.
 
June 2013 spotlight - Ariel Fund (ARGFX)

ARGFX is a $2 billion small- and mid-cap fund that applies social screens to avoid investment in companies whose primary source of revenue is tobacco production or handgun manufacturing. Its 5.63 DWA fund score is the highest of all tracked SRI funds, and places it among the top of all U.S. mid-cap funds, which average 3.91. As of May 28, it had a one-year price return of 36.62 percent, vs. 25.18 percent for the S&P 500.  (It also has favorable 5- and 10-year performance.) The 1.66 rRisk score shows high volatility, so risk must be factored into investment decisions.


Figures in the charts below are as of May 28, 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 Institutional (PRILX) 4.77 0.89  
    Calvert Large Cap Core Portfolio Class A (CMIFX) 4.65 0.94  
    Ave Maria Rising Dividend Fund (AVEDX) 4.48 0.93  
    iShares FTSE KLD 400 Social Idx Fd (ETF): NYS - DSI 3.85 1.00  
    CNI Charter Funds Socially Responsible Equity (AHSRX) 3.48 0.98  
    Appleseed (APPLX) 3.32 0.86  
    Walden Equity Fund (WSEFX) 3.25 1.00  
    Calvert Moderate Allocation Fund Class A (CMAAX) 3.16 0.68  
    Legg Mason Investment Counsel Social Awarenes (SSIAX) 3.03 0.73  
  Bond Funds      
    Ave Maria Bond Fund (AVEFX) 3.36 0.18  
    Calvert Income Fund Class A (CFICX) 3.20 0.22  
    Calvert Short Duration Income Fund Class A (CSDAX) 3.17 0.12  
    Calvert Long-Term Income Fund Class A (CLDAX) 3.04 0.32  
    Calvert Bond Portfolio Class A (CSIBX) 3.03 0.21  
           

 

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) 5.63 1.66  
    Ave Maria Growth Fund (AVEGX) 4.87 1.15  
    TIAA-CREF Social Choice Equity Fund Institutional (TISCX) 4.82 1.04  
    Calvert Global Water Fund Class A (CFWAX) 4.82 1.14  
    Domini International Social Equity Fund Class (DOMAX) 4.78 1.33  
    Parnassus Workplace Fund (PARWX) 4.73 1.20  
    Neuberger Berman Socially Responsive Fund Inv (NBSRX) 4.71 1.07  
    PowerShares WilderHill Clean Energy(ETF): NYS - PBW 4.59 2.13  
    Parnassus Mid Cap Fund (PARMX) 4.23 1.05  
    Ave Maria Catholic Values Fund (AVEMX) 4.21 1.18  
    Calvert Small Cap Fund Class A (CCVAX) 4.10 1.32  
    Vanguard FTSE Social Index Fund Institutional (VFTNX) 4.03 1.07  
    VALIC Company II Socially Responsible Fund (VCSRX) 3.88 1.02  
    Calvert Capital Accumulation Fund Class A (CCAFX) 3.81 1.35  
    DFA U.S. Social Core Equity 2 (DFUEX) 3.81 1.15  
    Parnassus Fund (PARNX) 3.75 1.45  
    VALIC Company I Global Social Awareness Fund (VCSOX) 3.73 1.11  
    Calvert International Equity Fund Class A (CWVGX) 3.63 1.21  
    Domini Social Equity Fund Investor Class (DSEFX) 3.49 1.05  
    iShares MSCI USA ESG Select Scl Indx Fnd: NYS - KLD 3.41 1.03  
    Calvert Equity Portfolio Class A (CSIEX) 3.09 1.08  
           

 

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) 2.9 0.87  
    Calvert Balanced Portfolio Class A (CSIFX) 2.86 0.57  
           
  Bond Funds      
    Calvert Tax-Free Bond Fund Class A (CTTLX) 2.76 0.32  
    Calvert Ultra-Short Income Fund Class A (CULAX) 2.75 0.05  
    Domini Social Bond Fund Investor Class (DSBFX) 1.45 0.14  
    Parnassus Fixed Income Fund (PRFIX) 1.41 0.25  
           

 

Low Strength, High Risk
Fund Score < 3, Above average volatility
           
    Name DWA Fund Score DWA rRisk Score  
  Equity Funds and ETFs      
    Parnassus Small Cap Fund (PARSX) 2.97 1.45  
    DFA Emerging Markets Social Core Portfolio (DFESX) 2.81 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.

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