Pax World Fund is the most thorough of all in excluding military and weapons-related products, while Dreyfus Third Century Fund does not specifically screen this area. Calvert Social Investment Fund and Working Assets have the most comprehensive social screens. There are also some mutual funds that have a partial screen or do not have a specific social screen, but are often used by socially responsible investors. The Pioneer Group (60 State Street, Boston, MA 02109) has five funds and an unwritten policy not to invest in alcohol, tobacco, gambling, or South African companies. A number of mutual funds invest primarily in certificates of the Government National Mortgage Association. Known as "Ginnie Maes," this investment represents partial ownership in a pool of mortgage loans. This type of fund is used since, at present, there are no socially screened bond funds. Municipal bond funds are also used. Municipal bonds are issued by local governments (e.g., state, county, city) and the interest earned is not subject to federal income taxes. Money from the bond sales is used by government agencies to support schools, housing—or nuclear power plants. When using a partially screened or unscreened fund, it is advisable to review a list of the fund's holdings to be sure you know in what enterprises you are investing. A summary of the financial information for the socially responsible funds is on the previous page. The minimum investment varies quite a bit among funds. Two of the funds have lower minimums for Individual Retirement Accounts (IRAs). The "Average Annual Total Return" column compares the return of the funds from 1983 through 1986. The next column, "12 Month Total Annual Return," indicates the return for 12 months ending February 26, 1987. The Lipper General Equity Fund Average and Donoghue Money Fund Average are averages of money market and mutual funds in general and are included for comparison purposes. The mutual funds should not be compared directly because they have varying investment objectives as indicated at the end of each social criteria summary. SRI Funds Social Criteria Calvert Social Investment Fund, 1700 Pennsylvania Avenue, NW, Washington, D.C. 20006; 800/368-2748 The fund invests in companies that; deliver safe products and services in ways that sustain our environment; are managed with participation throughout the organization; negotiate fairly with workers, provide a good work environment and opportimities for women and minorities; and foster human goals such as creativity and responsibility. It excludes companies primarily engaged in nuclear energy. business activities in South Africa, and the manufacture of weapons systems. Investment objective: growth and income. Dreyfus Third Century Fund, 666 Old Country Road, Garden City, NY 11530; 800/645-6561 This fund invests in companies that show evidence in the conduct of their business, relative to other companies in the same industry, of contributing to the enhancement of the quality of life in America. A company's record is considered in the areas of protection of the environment, occupational health and safety, consumer protection, and equal employment opportunity. In 1986, Dreyfus decided to exclude companies operating in South Africa. There is no screen for the military industry. Investment objective; growth. New Alternatives Fund, 295 Northern Boulevard, Great Neck, NY 11021; 516/466-0808 The fund invests in companies that have an interest in solar and alternative energy development. The fund states that alternative energy by its nature is an affirmative investment that tends to exclude atomic weapons. South African investments, and environmental polluters. Investment objective: long-term growth. Parnassus Fund, 244 California St., San Francisco, CA 94111; 415/362-3505 The fund takes a "contrarian" approach by buying stocks that are out of favor with the investment community. This is done when a company is financially sound and also has a good record in these five qualitative "renaissance" factors: 1) the quality of products and services; 2) market orientation, staying close to the consumer; 3) sensitivity to the community where it operates; 4) treatment of its employees; and 5) ability to innovate and respond well to change. Investment objective: long-term growth. Pax World Fund, 224 State Street, Portsmouth, NH 03801; 603/431-8022 The fund invests in companies that are not engaged in manufacturing military or weapons-related products, or in liquor, tobacco, or gambling industries. Seeks out companies with fair employment and pollution control policies. Excludes companies operating in South Africa with the exception of those providing food and medicines. Investment objective: income and, secondarily, growth. South Shore Bank, 71st & Jeffery Blvd., Chicago, IL 60649; 312/288-7017 South Shore Bank has a "Development Deposits" program that seeks deposits from all over the country to support its innovative lending program in low-income Chicago neighborhoods (see "Socially Responsible Banking," page 18). Accounts available include savings, checking, money markets, and certificates of deposit at competitive rates. Every depositor is insured up to $100,000 by FDIC. Investment objective: income. Working Assets Money Fund, 230 California Street, San Francisco, CA 94111; 415/989-3200 (collect). The fund seeks investments that create jobs and develop the American economy, such as housing and small business, promote the advancement of women and minorities, and bargain fairly with employees. It avoids firms that pollute the environment, manufacture weapons as a principal business activity, generate electricity from nuclear power, or have a substantial presence in a foreign nation controlled by a repressive regime such as South Africa. Investment objective: income. Page 9
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