Socially Responsible Investing
ECON: Mon., 6/13/11, Sheldon
In Class Activity: Analysis of Socially Responsible Investing
In class, you will be assigned one of the following socially responsible mutual funds:
Fund Name Ticker Symbol
1. Ariel Appreciation Fund (CAAPX)
http://www.arielinvestments.com/aaf/
2. Calvert Social Index (CSXAX)
http://www.calvert.com/sri-issuebriefs.html
3. Domini Social Equity Fund (DSEFX)
http://www.domini.com/GlobInvStd/index.htm
4. Green Century Balanced Fund (GCBLX)
http://www.greencentury.com/shareholder/
5. Pax World Fund Balanced (PAXWX)
http://paxworld.com/investment-approach/the-benefits-of-esg/
6. Neuberger Berman Socially Responsive Fund (NBSRX)
https://www.nb.com/WorkArea/DownloadAsset.aspx?id=8589942648
7. Parnassus Fund (PARNX)
http://www.parnassus.com/how-we-invest/ResponsibleInvestmentApproach.aspx
8. Sentinel Sustainable Core Opportunities Fund (MYPVX)
http://www.sentinelinvestments.com/sustainable_investing.php
Go to the Social Investment Forum web site’s screening and advocacy page:
http://www.socialinvest.org/resources/mfpc/screening.cfm
Find your fund on the list. Use the screening criteria listed and the information from the fund’s web site to answer the following questions on a separate sheet of paper (or use this worksheet):
1. How do the managers of your fund decide what to invest in?
2. Which criteria take the highest priority?
3. Which take the lowest?
Go to Yahoo Finance:
Enter the ticker symbol for your fund and click “Get quotes.” On the page select a chart on the left hand side (interactive or basic). Click on “compare.” Select the S&P 500 index (^GSPC) and enter the Russell 2000 index manually (^RUT). Examine the performance of this fund compared to the two benchmarks.
Next, click on “performance” on the left hand side of the screen.
4. Based on what you have observed on the last two screens, how has this fund performed…
a. …in the past three months?
b. …in the past year?
c. …in the past five years? (Give percentage gains or losses on a separate paper.)
5. Has the fund performed better or worse than the non-socially responsive benchmarks? Explain.
Now click on “holdings” on the left hand side and scroll down to “sector weightings.”
6. Are the sectors relatively balanced, or are certain industries overrepresented? What kinds of risks or benefits may these weightings produce?
7. Based on the articles you have read, the description of your fund, your analysis of the fund’s performance and your own values, evaluate whether the fund would be a good buy for building up your own college savings or retirement. Express your view in a well-developed paragraph.
Posted by: yamada | 06-10-2011 | 12:06 PM
Posted in: Economics Assignments