RELIGIOUS SOCIALLY RESPONSIBLE MUTUAL FUNDS
4 WK
Yr to Date
-9.50%
-9.00%
-3.60%
-8.00%
-7.80%
-21.90%
8.30%
-7.30%
-16.90%
-17.90%
1 Yr
3 Yr
5 Yr
Symbol
Conservative
Christian
Mennonite
Catholic
Islamic
NOAHX
TPLNX
MMPAX
AQEGX
AMAGX
-47.30% -1.00%
N/S
7.90%
5.00% 9.70%
-10.40%
N/S
N/S
-20.60% 4.50% 13.40%
-33.10% 15.00% 15.00%
I HAVE LEARNED THAT INVESTING IN THE STOCK MARKET COULD BE VERY COSTLY IF
YOU MAKE THE WRONG CHOICES. THESE FUNDS, WITH THE EXCEPTION OF TPLNX, HAVE
BEEN LOSING EARNINGS ALONG WITH THE DOW, S&P 500, AND THE NASDAQ. I THINK
THAT IN ORDER TO BE A GOOD STEWART OF YOUR MONEY YOU NEED TO INVEST IN
FUNDS THAT ARE GOING TO EARN YOU A PROFIT. IF YOU ARE CONCERNED ABOUT YOUR
CAUSES, MAKE INVESTMENTS IN COMPANIES THAT ARE AT LEAST 65% FRIENDLY TO
YOUR CAUSES AND VALUES, THEN GIVE TO CHARITIES THAT ARE CLOSE TO 100%
FRIENDLY TO THOSE CAUSES AND VALUES. EVEN IF THE SOCIALLY RESPONSIBLE FUNDS
SHARE YOUR SAME VALUES, THE COMPANIES THEY INVEST IN CAN NOT SHARE ALL
THOSE VALUES TO THE DEGREE YOU DESIRE. THE REASON TO INVEST IS TO HAVE
ENOUGH MONEY TO PROVIDE FOR THE FUTURE WITHOUT HAVING TO PUT A BURDEN ON
OTHER PEOPLE TO SUPPORT YOU, WHICH MAY BE WORSE THAN INVESTING IN
UNFRIENDLY COMPANIES.
I WOULD TAKE A LOOK AT THE PERFORMANCE OF SOCIALLY RESPONSIBLE MUTUAL
FUNDS BUT MY DECISION TO INVEST WOULD FOR THE MOST PART DEPEND ON THE
BOTTOM LINE AS LONG AS THE COMPANY DID NOT PRODUCED A PRODUCT OR SERVICE
THAT WAS AGAINST MY CORE VALUES.
How Do Socially Responsible Funds Stack Up?
by Emily Hall and Jon Hale | Socially responsible investing (SRI) has always had to fight
the perception that it may be better for your soul than for your bottom line. Most investment
professionals will agree in principle that adding social criteria on top of the things that
investors normally consider when selecting stocks--company fundamentals and stock
valuation--restricts one's investable universe in ways that are unlikely to improve returns.
If, for example, you started out with a universe of 100 stocks, and your social screens
disqualified 20 of them, you'd have only 80 choices available to try to outperform the market
and other active investors who have the entire 100 stocks at their disposal. The conventional
wisdom might be different if social criteria effectively screened out the worst-performing
stocks, but a lack of social graces is not necessarily an impediment to a company's stock price.
Academics studying the link between commonly used social criteria and stock performance
haven't found a clear-cut relationship, positive or negative.
Two years ago, when we took a look at the universe of socially conscious mutual funds, not a
single SRI fund merited a 5-star rating.
A lot can change in two years.
Today, 21% of the SRI funds in our database that have the necessary three-year record sport a
5-star rating. That's twice the rate of the overall fund universe. Moreover, only 19% of SRI
funds find themselves in 2-star or 1-star territory, while a third of the overall fund universe
rates that low.
SRI funds stack up even better when they are compared to their specific Morningstar
categories. One quarter of these funds currently sport a top category rating of 5, and half have
category ratings of 4 or 5.
The smaller group of SRI funds that have a five-year record (35 in all) is less impressive,
though still acceptable. A total of 19 have outperformed their category peers over the trailing
five years while 16 underperformed.
That doesn't mean social screens add value, but it's hard to make the case that they subtract it.
What happened? Have SRI funds discovered some magic formula for investing that didn't
exist before? Not really. Few, if any, funds have made notable changes in their screening
practices over the past couple of years.
But screening certainly has something to do with SRI funds' recent performance. Screening
out tobacco companies and nuclear power utilities has kept the funds away from some of the
market's worst performers over the past few years. Avoiding these and other firms with poor
environmental records leaves the typical SRI domestic-equity fund underweighted in value
stocks and overweighted in growth stocks. Indeed, in the SRI arena growth funds outnumber
value funds 14 to 5. Most SRI domestic-equity funds are also large-cap offerings.
That proved to be a potent combination in 1997 and 1998 when large-growth stocks fueled the
stock market's rise. Of the 14 funds that came of age between October 1997 (the date of our
earlier study) and August 1999, eight had significant exposure to large-growth stocks and
seven of those funds garnered 5-star ratings. Two older funds improved to five stars for the
same reason.
That's not the entire explanation, though. The large-growth tilt helps explain SRI funds'
improved star ratings, but not their improved category ratings. Lots of large-blend and largegrowth funds sport 5-star ratings because they are being favorably compared with smaller-cap
offerings, but SRI funds still do well when we compare apples to apples (i.e., compare funds
in the same style-box-based Morningstar category).
Some of this success owes to the impact of two socially screened indexes, which together are
tracked by six of the top-rated funds. The Domini Social index and the Citizens index have
prospered for the same basic reason that the S&P 500 index has over the past couple of years:
The stocks at the top of these capitalization-weighted indexes were those that led the market's
rise.
Domini Social Equity DSEFX and its institutional fund both have category ratings of 5, as do
two other funds based on the Domini Social index--Green Century Equity GCEQX and
Devcap Shared Return DESRX. Both share classes of Citizens Index Fund WAIDX have
recently passed their third anniversaries and now sport top category marks. In all, about half
of SRI funds that have category ratings of 5 are indexed offerings.
Even accounting for the index effect and the large-growth bias, though, SRI funds remain
skewed toward the top of the category ratings. If we throw out the large-growth and largeblend offerings, half of the remaining SRI funds have category ratings of 4 or 5 (multiple
share classes excluded). SRI offerings boast top category ratings in seven different categories.
With that many top performers in the SRI-fund stable, it's a relatively easy task for social
investors to pick out a good fund or two. But is it possible for social investors to build a welldiversified portfolio consisting solely of socially screened funds? It's one thing to show
concern about social issues by dropping a few bucks in a single fund, but quite another to put
an entire nest egg into social funds.
How do Socially Responsible Funds Stack Up? | continued
For those committed to the concept, we think a broad portfolio can be built-but just barely, and only for a certain type of social investor. For one thing,
few socially screened funds have really proven themselves over long time
periods. Of the nine funds with 10-year records, only Dreyfus Third Century
DRTHX (large-growth) and Pax World PAXWX (domestic hybrid) have 4- or
5-star ratings. For another, there aren't a lot of choices in many investment
categories, particularly fixed-income, international, and value-oriented
domestic equity. Socially screened funds can also be expensive. The typical
SRI fund charges 15% more than its average category peer. Apparently, many
SRI funds' sense of social responsibility doesn't extend to how much they
charge their shareholders.
And last, but certainly not least, SRI funds do not all follow the same social
investment policies. Social funds don't all use exactly the same screens, don't
all engage in the same level of shareholder activism, and don't all aim to have
a high social impact. Moreover, the term "socially responsible" encompasses
two groups of funds: religious and non-religious.
Religious offerings such as Amana Growth AMAGX (an Islamic fund) and
Timothy Plan TIMBX (a conservative Christian fund) screen out stocks that
violate particular religious tenets, and such screens vary considerably from
fund family to fund family. Many nonreligious funds, on the other hand, share
similar screens (although they are not the same by any means). Offerings such
as Domini Social Equity and Calvert Social Investment Fund Balanced CSIFX
search for companies with strong records on environmental, diversity, and
workplace issues. These same funds also tend to exclude alcohol, tobacco, and
weapons makers and many also reject nuclear power companies.
With these caveats in mind, though, it is possible to select a quality portfolio
of nonreligious SRI funds. (The same is not true of the religious funds. While
there are a number of religious funds available--and some have good track
records--there isn't a broad enough array to assemble a diversified portfolio of
funds that adequately accommodates a particular religious persuasion.) We
make one effort below, by highlighting some of the better secular SRI
offerings in each asset class--domestic equity, international equity, and fixedincome.
Large Cap
Domini Social Equity is a passively managed fund that tracks the Domini
Social index. All stocks in the index have passed a series of positive and
negative screens, and the final result is a list of 400 companies--approximately
250 from the S&P 500 and another 150 large- and mid-cap non-S&P 500
firms. Like many socially responsible funds, Domini Social Equity has a
growth tilt, although the fund still manages to land consistently in the largeblend column of the style box. That fondness for growth stocks has helped this
fund to a superb record: Its three- and five-year returns best the S&P 500
index. Domini's shareholder activism gives the fund added appeal. A great
core holding.
Alternative: Like Domini, Citizens Index is a large-cap fund, but it contains
even more growth names than its rival. Citizens' record is very good, but its
1.59% expense ratio is frustratingly high for an index fund.
Mid-Cap Value/Blend
Ariel Appreciation CAAPX is a solid fund that provides some much-needed
diversification to a socially conscious portfolio. Manager Erik McKissack
looks for undervalued stocks and finds a lot of his favorites in financials,
services, and industrial cyclicals. He doesn't invest much in technology,
making this offering a nice counterweight to the tech-heavy portfolios of most
other SRI offerings. The fund also holds a healthy dose of small caps.
McKissack runs a concentrated portfolio, though, which can lead to the
occasional rough spot, as this year's lackluster performance demonstrates.
Ariel isn't as aggressive in its social screening as many of its SRI peers.
Alternative: At Neuberger Berman Socially Responsive NBSRX, another
value-oriented fund, manager Janet Prindle does her social screening a little
differently than most. Rather than avoiding entire industries, she looks for the
companies in each sector with the best environmental and workplace records
that also meet her financial criteria. Thus, this fund owns more industrialcyclical names than many of its SRI peers. A solid record adds to the appeal.
Mid-Cap Growth
Citizens Emerging Growth WAEGX is an actively managed fund with a lot of
oomph. Manager Richard Little's earnings-momentum approach, along with a
concentrated portfolio and a huge technology stake (currently 40% of assets),
has delivered strong returns. Such aggressive traits will inevitably lead to
volatility, though. Unfortunately, the fund shares a family trait with Citizens
Index: an unpalatably high expense ratio. On the plus side, the fund uses
extensive positive and negative social screens.
Alternative: Calvert Capital Accumulation CCAFX has a less stellar--but
recently improved--record, and it's not as risky as Citizens Emerging Growth.
Calvert's social screens are wide-ranging, but its expenses are also high.
Fixed Income
Calvert Social Investment Bond CSIBX is a straightforward fixed-income
choice. It invests mostly in mortgages and mid- to high-quality corporate
bonds. Just as with its stock funds, Calvert avoids bonds issued by firms that
fail their screens. For example, management eschews companies with poor
environmental and workplace records. Moreover, manager Greg Habeeb
doesn't buy Treasuries because their proceeds could finance government
defense spending. The fund's long-term record is respectable, and it has a
category rating of 4.
International
Here, social investors have to settle for average. Calvert World Values
International Equity CWVGX is one of the few socially screened international
funds available, and the only one with a three-year record. Manager Andrew
Preston looks for cheap stocks within undervalued markets. The fund lands in
the middle third of the foreign-stock group.
Alternative: Citizens Global Equity WAGEX has an outstanding record, but
it's a world-stock fund with a third of assets in the United States, so its doesn't
provide the diversification of an all-foreign fund. Like other Citizens funds it
has a high expense ratio.
Posted
09-17-1999
What's So Great about Socially
Responsible Funds?
by Peter Di Teresa | 06-26-2000 | E-mail Article to a Friend | Ask the Professor a Question
Dear Professor,
I am trying to understand why all the socially responsible funds
always beat the S&P 500. I contacted Domini and Citizens, and I
understand their strategies, but I want the real reason these funds
beat the market.
Filippo B.
Is virtuous investing really profitable?
Not exactly.
What SRI Funds Really Do
Not all funds that do socially conscious or socially responsible
investing (or SRI) embrace the same principles. Some eschew all
companies in the nuclear-power and weapons industries, while
others won't buy liquor, gambling, or tobacco stocks. Other funds
score companies according to their worker relations, community
involvement, or product-safety records.
There is a host of SRI funds. Some base their stock picks on
religious principles, including:

Islamic principles: Amana Mutual Funds Trust Growth AMAGX.

Catholic principles: Catholic Values Equity M$-DEG, Aquinas
Equity Growth AQEGX.

Mennonite principles: MMA Praxis Growth MMPAX.

conservative Christian principles: Timothy Plan Small-Cap Value
TPLNX, Noah Fund NOAHX.
Other offerings, such as the following, use secular, broadly
progressive principles:

Domini Social Equity DSEFX.

Citizens Index WAIDX.

Calvert Social Investment Equity CSIEX.

Ariel Fund ARGFX.
Still other SRI funds focus on a specific social concern:

the environment: New Alternatives NALFX, Green Century Equity
GCEQX.

labor relations: MFS Union Standard Equity MUEAX.

gay and lesbian issues: Meyers Pride Value MYPVX.

women's issues: Women's Equity FEMMX.
Clearly, these funds aren't all going to agree on what they should
buy. Using the Stock Overlap feature in Morningstar.com's
Portfolio Manager, I found that most of them own Microsoft
MSFT, but that's an exception.
How SRI Funds Really Do
With so many funds following such different mandates, it would
be surprising if they performed alike. Indeed, Filippo overstated
the case. At the end of May, 28 of 55 SRI funds had 12-month
returns better than the S&P 500's. Over the past three years, 16 of
48 funds beat the index; over five years, 9 of 38 SRI offerings
triumph over the index.
SRI funds are no different from less virtuous competitors: Their
performances depend on the stocks they own. The two fund
groups that Filippo cites run index funds (Domini Social Equity
and Citizens Index). They both start with the largest U.S.
companies, then exclude tobacco, liquor, and weapons firms and
companies that harm the environment. They prefer companies
with good environmental records, progressive workplace
policies, and involvement in their communities.
Domini Social Equity and Citizens Index have myriad stocks in
common--Cisco Systems CSCO, Intel INCT, Microsoft, and
Lucent Technologies LU, to name a few. Such stocks are
representative of the funds' big technology stakes--at least 43% of
their assets are in tech stocks. That's precisely why those funds
clobbered the S&P 500 in recent years.
What Should You Do with SRI Funds?
If you're just looking for performance, there's no reason to buy a
socially responsible fund. It's no guarantee of high returns.
If you buy an SRI fund, it should be because of your religious or
ethical convictions. In that case, you want the fund to do what
you're expecting it to. Scan the prospectus and annual report to
see if the fund really sticks to its principles. As with any fund, its
performance should make it worth owning.
For a great guide to selecting SRI funds, read "How to Pick a
Socially Responsible Fund" .
Ask a Question, Win a Prize
I want to reward you for all the great questions you've been
asking. I was going to give everyone an A, but I thought I'd offer
something more useful instead. Here's the deal: At the end of
every month, I'll randomly select five winners from all the
questions I received that month. If you're one of the five, you'll
get three free months of Morningstar.com Premium Service. (If
you already subscribe, we'll extend your subscription.) I'll notify
you via e-mail to award your prize. So keep sending those
questions. After all, when's the last time you got a reward for
quizzing your professors?
Click here for complete contest rules.
Enterprise Capital Mgmt To Advise 11 Open-End
Funds
Dow Jones Newswires
WASHINGTON -- Investment advisory firm Enterprise Capital Management Inc.
is planning to advise 11 new funds as part of the Enterprise Group of Funds Inc.
series, according to a filing with the Securities and Exchange Commission.
The proposed funds are the Mid-Cap Growth Fund, the Deep Value Fund, the
Large-Cap Fund, the Emerging Countries Fund, the International Core Growth
Fund, the Worldwide Growth Fund, the Global Healthcare Fund, the Global
Socially Responsible Fund, the International Internet Fund, the Mergers and
Acquisitions Fund and the Convertible Securities Fund.
The Enterprise Mid-Cap Growth Fund will seek long-term capital appreciation by
investing in midsize companies that have market capitalizations corresponding to
the middle 90% of the Russell Mid-Cap Growth Index, the filing said. The fund
will invest at least 75% of its total assets in common stocks of U.S. midsize
companies. Portfolio managers from subadviser Nicholas-Applegate Capital
Management will manage the fund.
The Enterprise Deep Value Fund will aim for total return through capital
appreciation, with income as a secondary objective, by investing mainly in
undervalued - referred to as deep value - large-capitalization companies.
Wellington Management Co. will be subadviser. John R. Ryan, senior vice
president, will manage the fund.
The Enterprise Large-Cap Fund will seek long-term capital appreciation by
investing in companies whose capitalizations correspond to the upper 90% of the
Russell 1000 Growth Index. At least 65% of the fund's total assets will be
invested in large capitalization equity securities. Portfolio managers from
subadviser Nicholas-Applegate Capital Management will manage the fund.
The Emerging Countries Fund will aim for long-term capital appreciation by
investing at least 65% of its assets in equity securities of foreign companies
located in at least three countries with emerging securities markets. The fund will
select portfolio securities from 6,000 foreign companies. Portfolio managers from
subadviser Nicholas-Applegate Capital Management will manage the fund.
The Enterprise International Core Growth Fund will seek long-term capital
appreciation by investing in equity securities of companies located in foreign
countries whose market capitalization is in the top 75% of stock market
capitalizations for companies in each country. Portfolio managers from
subadviser Nicholas-Applegate Capital Management will manage the fund.
The Enterprise Worldwide Growth Fund will aim for long-term capital appreciation
by investing at least 65% of its assets in securities of companies that are located
in at least three countries, which may include countries with emerging securities
markets. The fund looks for companies with above average per-share earnings
growth, high return on invested capital and sound balance sheets, among other
criteria. Portfolio managers from subadviser Nicholas-Applegate Capital
Management will manage the fund.
The Enterprise Global Health Care Fund will seek long-term capital appreciation
by investing at least 75% of its assets in healthcare sector equity securities. The
remaining 25% of the fund's assets will be invested in equity securities of other
companies that will benefit from developments in the healthcare sector. Portfolio
managers from subadviser Nicholas-Applegate Capital Management will manage
the fund.
The Global Socially Responsible Fund will aim for total return by investing in
equity securities of companies that are socially responsible and that are located
in countries that are included in the MSCI World Index. The fund looks for
companies that demonstrate leadership in human rights, public health and the
environment, among other criteria.
The Global Socially Responsive Fund will be subadvised by Rockefeller & Co.
Inc. Farha-Joyce Haboucha, co-director of Rockefeller's Socially Responsive
Investments, will act as portfolio manager.
The Enterprise International Internet Fund will seek long-term capital
appreciation by investing at least 65% of its assets in equity securities of foreign
companies that are involved in the research, design, development and
manufacturing of products, processes or services, or in the business of
distributing products or services, on the Internet. The fund will be subadvised by
Fred Alger Management Inc. David Alger and Dan Chung will subadvise the
fund.
The Enterprise Merger and Acquisitions Fund will aim for capital appreciation by
purchasing shares of companies that are likely to be acquisition targets within 12
months to 18 months. The fund will engage in risk arbitrage by investing in equity
securities of companies that are involved in publicly announced mergers,
takeovers, leveraged buyouts and other corporate reorganizations, the filing said.
The fund will be subadvised by Gabelli Asset Management Co. Mario J. Gabelli,
the chief investment officer of the subadviser, will manage the fund.
The Enterprise Convertible Securities Fund will seek total return through capital
appreciation and current income by investing in convertible securities of
companies with market capitalizations above $500 million. At least 65% of the
fund's assets will be invested in income-producing equity securities. Portfolio
managers from subadviser Nicholas-Applegate Capital Management will manage
the fund.
Each fund will offer Class A, Class B, Class C and Class Y shares.
For general accounts, the minimum initial investment for each fund will be $1,000
and $50 for subsequent investments.
Enterprise Capital Management, Atlanta, was formed in 1986.
-By Marc A. Wojno, Dow Jones Newswires/Federal Filings Business News; 202628-9792
SMARTMONEY.COM: Global Good Will Hunting
By DAWN SMITH
NEW YORK -- As manager of the socially responsible Citizens Global Equity
fund (WAGEX), Sevgi Ipek scours the globe for fast-growing companies with a
conscience.
That mandate led her heavily into technology, and thus into troublesome times
since last March. But it's been a hard habit to break, as the fund focuses on
growth, and many Old Economy sectors, despite their recent progress, are offlimits because of the fund's social screens. As a result, the portfolio shed 19% in
2000 and is down 20% so far this year. Nonetheless, its long-term record is
intact: The fund gained 14.52% annualized over the past five years, slightly
better than the S&P 500 index.
Right now, about 55% of the fund's assets are invested overseas, with the largest
allocations in the U.K. (10%), Japan (7.5%) and Spain (5.8%). (For investors who
want foreign stocks primarily, Ipek also manages the Citizens International
Growth fund (sorry, no snapshot available), launched in December 2000.) Not
surprisingly, Ipek travels often; she's preparing to visit Japan later this week to
size up the country's recent progress. "It seems [the Japanese] are willing to
handle the bank-loan problems at the moment," she says. "We'll have to see if
they indeed act on it."
These days, Ipek is trying to steer her portfolio away from technology and
telecom; valuations, she says, have become much more important. As a result, a
mix of sectors is represented by the fund's largest holdings, which include AOL
Time Warner (AOL), Toyota Motor (TM) and Pepsico (PEP).
Ipek may head a socially responsible fund, but investors apparently needn't
worry about her listening to her heart and not her head. A native of Turkey, Ipek
says she has never invested in her homeland, though she has followed it
throughout her career. "Too much volatility, too much uncertainty," she says.
"They've never, ever delivered on the economic reforms, the political reforms.
They've always disappointed."
We spoke with Ipek recently to gain her international insights. You can chat with
her online tonight, March 27, at 8 p.m. ET, when she joins the ranks of our
SmartMoney Stock Pickers.
SmartMoney.com: Your investment strategy involves both a macroeconomic
view and individual company research. Could you explain how that works for
you?
Sevgi Ipek: It's a combination of top-down and bottom-up investing. The topdown view, the macroeconomic view, is dedicated to assessing which countries
and which sectors of the economy we favor going forward. That guides us in our
decision regarding the country and sector allocation of the fund. We look at the
broad macroeconomic data: gross domestic product growth, inflation, monetary
policy.
[On the company level,] we tend to take a growth approach and try to identify
companies that have demonstrated very strong market share and earnings in the
past on the top-line - on the revenue side - and on the bottom-line - on the profit
side. And we look for companies that not only have a good earnings track record,
but [stability in] those earnings. We tend to avoid companies that have high
volatility in their earnings trends and focus on stable growers.
SmartMoney.com: Could you give me a recent example of that process in
action?
SI: Spain has a very good track record within the European Union in terms of
economic growth. And in terms of growth, the construction sector has been in a
strong trend. With Spain catching up [to] the income level of other European
countries - in wages and salary in general - there's also been a change in
mentality toward home ownership. This created a very nice market for
construction companies both on the residential and commercial side. Also, the
government, which is upgrading the country's infrastructure, has been a big
spender. That combination provided a very good outlook for the companies in
this sector. We tried to pick the companies that are in the best position to take
advantage of that growth - the largest market share, the most competitive
situation in the market, strong management, good corporate governance - and
those that have consistently delivered on market expectations. And valuation, of
course. [We own] Dragados: It is both a homebuilder and in commercial
construction and is also involved in infrastructure, such as road-building. That's
our biggest position in Spain, where we have about 5% of our assets.
SmartMoney.com: According to the Citizens Global Equity fund's prospectus, you
must have at least 50% of your assets overseas.
SI: That has been a little bit of a problem. We've had lots of problems with the
currencies overseas over the past 12 months. The euro has been in a very
difficult situation since [it was launched], and also, we had the new Central Bank
to govern monetary policy for all the European Union countries. It seems that the
market has been on the cautious side, trying to see if this institution is going to be
able to gain the necessary credibility and conduct a monetary policy that has no
precedent in Europe. Also, there's the fact that there have been a lot of capital
outflows from Europe into the U.S. That has worked against the European Union.
SmartMoney.com: But we've witnessed a boost in the emerging markets this
year.
SI: That was a dead-cat bounce, more than anything else. Fundamentally, there
were very few reasons why those markets would rebound that fast and that
much. It was more on a liquidity basis, because the U.S. was cutting interest
rates and injecting liquidity into the system, and some of that spilled over into
emerging markets. [We have] very little exposure to [emerging markets] - less
than 5% of assets.
SmartMoney.com: You speak several languages, including Turkish. Does this
help when researching foreign companies?
SI: I was born in Turkey, but I was raised and educated in Belgium. [It has helped
me] to fit in culturally - to understand the mentality and how businesses,
especially management, operate and think. A lot of people, for example, believe
that we can have overseas the same kind of quick restructuring that we see in
U.S. corporations. Especially in Europe, people expect that companies can turn
around and restructure in a matter of a few months. Usually that is very difficult to
do because of all the labor and regulation handicaps that those companies have
in the markets in which they operate. So you have to have a good understanding
of the regulatory framework of the countries. Having lived there and having gone
through those regulatory situations, you get a better handle on the situation and
how things can happen - or not happen.
SmartMoney.com: How does the socially responsible element of the fund come
into play? Specifically, how do you work with Citizens' research department?
SI: I focus on investments and try to identify the best companies going forward.
Citizens uses two sets of social screens. One we call an exclusionary screen,
which means that we exclude companies involving tobacco, gambling, nuclearpower generation, animal testing, alcohol and so on. Since the exclusionary
screens are quite obvious, I do the initial screens on the companies myself. The
second set of screens is more in-depth - qualitative screens that Citizens
handles. When I identify good companies and good names for investment that
are not involved in tobacco, alcohol, gambling, petroleum industry and so on, I
send those names over to [Citizens] for in-depth screening.
SmartMoney.com: Are there sectors you avoid overall because of the
exclusionary screen?
SI: In general, the tobacco and personal care [sectors] and the beverage sector,
with a few exceptions, like Coca-Cola (KO) and Pepsico [two of the fund's
holdings]. Usually basic materials, like metals and mining; most of the chemical
sectors, and also the paper and forest-products sector. And in the energy sector,
the oil companies and oil-services companies usually do not pass the screens.
The personal-care companies, most of them still conduct animal testing, and also
the pharmaceutical companies that have skin-care and personal-products
divisions. [However] animal testing for drugs is OK, because you need to do that.
SmartMoney.com: A lot of socially responsible funds appear to be heavy in
technology because they exclude so many other sectors. Is that why your fund is
heavy in tech?
SI: Those stocks had been very good investments until March of 2000. They
were exceptional performers, and the fundamentals were in place, until we had a
little bit of overexcitement over the sector. Having said that, the social screens do
guide us to be more heavily weighted in this sector.
SmartMoney.com: Which technology stocks have you sold off completely in the
past few months?
SI: We had very good performers in many of those technology stocks, and we
decided to take our profits and stay on the sidelines on some names. We sold
Network Appliance (NTAP) in the storage-device sector. We sold Cisco Systems
(CSCO), and we reduced some other holdings. We had a position in Ariba
(ARBA), which did very well for us, but we sold it when the market's
fundamentals became a bit more uncertain.
SmartMoney.com: What sectors and stocks have you been moving into as a
result?
SI: I've been targeting more of the interest-rate-sensitive sectors of the economy
and looking more into the Old Economy. Although everything is suffering now
because of the economic slowdown, I believe ultimately that because of these
interest-rate reductions and increased liquidity, these Old Economy companies
are going to be the main beneficiary of the current situation world-wide. I've been
increasing some of the names in the retail sector with the addition of the homeimprovement company Lowe's (LOW) and also Staples (SPLS).
SmartMoney.com: Are you investing in any other energy stocks?
SI: In the natural-gas sector I own Enron (ENE) and Dynegy (DYN). They have
been growing very fast in the past and have very good prospects, because
natural gas is going to be one of the best choices in energy going forward. And I
still own my large position in the electric utility AES (AES). It's very well
diversified geographically, and it takes advantage of growth prospects overseas,
especially in emerging markets, which are in need of a lot of development as far
as power is concerned.
SmartMoney.com: What do you still like in the technology sector?
SI: I still like the storage sector. I'm still holding onto my EMC (EMC) position,
which is the leader in that field, and the stock is quite attractive after having
corrected since the beginning of the year. The growth prospects are still very
strong. And I still like the Internet-infrastructure sector. I did take profits and sold
out of Cisco, but recently I've been nibbling at their main competitor, Juniper
Networks (JNPR), which is growing faster than Cisco and gaining market share
nonstop. The valuation on the stock, which was much too expensive a year ago,
has now come down to very attractive levels. I'm not very enthusiastic about the
PC sector, so I'm not really investing in any PC companies or related companies.
I'd rather find attractive entry points in the next-generation-technology
companies. I started buying a little bit of Ciena (CIEN) in the optical-networking
[switching] sector.
SmartMoney.com: What's your outlook for the portfolio for the rest of the year?
SI: Everything is happening much faster than anyone had anticipated. Europe
was holding its own until very recently, and now we are seeing the spillover
effects of the U.S. slowdown. All the economic indicators over there are
suggesting that we are going to see a steep decline. [But] we are seeing the
excess capacity being worked out of the system. And companies are adjusting
much faster to the economic slowdown than we've seen in the past. That means
we should also, hopefully, have a much faster recovery, probably toward the end
of this year, because you have to take into account that monetary stimulus and
easing take a little while to act. I would think with the fourth quarter of this year
we should already see some improvement in the economic outlook. Having said
that, this is a very big shock in some countries. Right now I'm a little bit worried
about what's going on in Argentina. If we were to have a big crisis in a major
country in Latin America - if we were to see a devaluation coming out of
Argentina - that would aggravate the situation.
For more information and analysis of companies and mutual funds, visit
SmartMoney.com at http://www.smartmoney.com/
Noah Investment Group, Inc: Noah Fund
Enter Symbol:
Friday, March 30, 2001
NOAHX
Source: Lipper Inc.
NET ASSET VALUE
Last:
14.36
Change:
+0.16
Percent
Change:
+1.13%
PERFORMANCE
4-Week:
Year-to-date:
1-Year:
3-Year (annualized):
Fund Return
-9.5%
-21.9%
-47.3%
-1.0%
5-Year (annualized):
N/S
10-Year (annualized):
N/S
52-Week High:
52-Week Low:
27.91
13.94
Vs. all Funds in Objective
Rank
D
D
E
D
Percentile
33
30
15
20
Objective: Large-Cap Growth
How to read these charts
INFORMATION
Investment
Objective:
Investment
Policy:
Large-Cap Growth
Free Fund
The Fund seeks capital appreciation consistent with preservation of Prospectus
capital, as adjusted for inflation, and current income.
Fund Manager
(Tenure):
William L. Van Alen,
Jr.
(since 1998)
Total Net Assets:
$13.3 Million
Phone:
800-794-6624
Distribution Channel:
Minimum Initial Investment:
$1000
Maximum Sales Charge:
0%
Maximum Redemption Charge:
0%
Total Expense Ratio:
2.15%
Convertible
Cash/Equiv.
0%
0%
Direct
HOLDINGS
Asset Allocation
Stocks
Bond
Other
91.2%
0%
8.8%
Top Sectors
Top Holdings
Total Net
Assets
Electronic Technology
Retail Trade
Health Technology
Technology Services
Consumer Services
Communications
Commercial Services
Finance
Consumer Non-Durables
Transportation
Total Net
Assets
CISCO SYSTEMS INC
WAL-MART STORES INC
PFIZER INC.
AMERICA ONLINE INC
HOME DEPOT INC (USA)
APPLIED MICRO CIRCUITS CORPORA
MERCK & CO (USA)
COMVERSE TECHNOLOGY INC
QUALCOMM (USA)
JDS UNIPHASE CORP
43.8%
16.2
13.6
8
4.3
4.1
3.1
2.5
1.6
0.7
DISTRIBUTION HISTORY
8.3%
6.2
4.7
4.2
4
3.5
3.5
2.3
2.2
2.1
(as of 2/28/01)
Income Capital Gains
Year Distribution Distribution
2001
$0
$0
2000
$0
$0
1999
$0
$1.59
1998
$0.44
$0
1997
$0
$0.09
1996
$0.04
$0
Return to top of page
Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.
Timothy Plan: Timothy Plan Small Cap Value Fund;
Class A Shares
Enter Symbol:
Friday, March 30, 2001
TPLNX
Source: Lipper Inc.
NET ASSET VALUE
Last:
12.05
Change:
+0.20
Percent
Change:
+1.69%
PERFORMANCE
4-Week:
Year-to-date:
1-Year:
3-Year (annualized):
5-Year (annualized):
Fund Return
-9.0%
8.3%
7.9%
5.0%
9.7%
10-Year (annualized):
N/S
52-Week High:
52-Week Low:
14.04
11.13
Vs. all Funds in Objective
Rank
E
A
A
B
C
Percentile
7
98
82
76
54
Objective: Small-Cap Core
How to read these charts
INFORMATION
Investment
Small-Cap Core
Objective:
Investment
Policy:
Other Share
Classes:
The Fund seeks long-term capital growth and its secondary objective is current
income. The Fund seeks to achieve its objective while abiding by the ethical
standards established for investments by the Fund. The Fund invests primarily in
small-cap stocks and ADR's.
Timothy Plan: Timothy Plan Small Cap Value Fund; Class B Shares
Fund Manager (Tenure):
Awad & Associates
(since 1997)
Total Net Assets:
Phone:
$16.5 Million
800-662-0201
Distribution Channel:
Minimum Initial Investment:
$1000
Maximum Sales Charge:
5.5%
Maximum Redemption Charge:
0%
Total Expense Ratio:
1.6%
Dealer
HOLDINGS
Asset Allocation
Stocks
Bond
Other
79.2%
0%
20.9%
Convertible
Cash/Equiv.
Top Sectors
0%
0%
Top Holdings
Total Net
Assets
Finance
Electronic Technology
Consumer Services
Commercial Services
Health Services
Producer Manufacturing
Non-Energy Minerals
Industrial Services
Process Industries
Technology Services
30.5%
21.5
12.9
11.6
4.7
4.6
4
3.1
2.7
2.6
DISTRIBUTION HISTORY
Total Net
Assets
DORAL FINANCIAL CORP
INVESTMENT TECHNOLOGY GROUP
AVID TECHNOLOGY INC
JOHN WILEY & SONS INC 'A'
NORTH FORK BANCORP INC
RESEARCH IN MOTION LTD
VENTIV HEALTH INC
ANNUITY AND LIFE RE (HOLDINGS)
MARTIN MARIETTA MATERIALS INC
PENTON MEDIA INC
8.6%
6.9
5.3
5.2
5
5
4.1
4.1
4
3.9
(as of 2/28/01)
Income Capital Gains
Year Distribution Distribution
2001
$0
$0
2000
$0
$2.51
1999
$0
$0
1998
$0
$0
1997
$0
$1.38
1996
$0.10
$0
Return to top of page
Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.
MMA Praxis Mutual Funds: MMA Praxis Growth Fund;
Class A Shares
Enter Symbol:
Friday, March 30, 2001
MMPAX
Source: Lipper Inc.
NET ASSET VALUE
Last:
13.52
Change:
+0.16
Percent
Change:
+1.20%
PERFORMANCE
Fund Return
-3.6%
-7.3%
-10.4%
4-Week:
Year-to-date:
1-Year:
3-Year (annualized):
N/S
5-Year (annualized):
N/S
10-Year (annualized):
N/S
52-Week High:
52-Week Low:
16.04
13.06
Vs. all Funds in Objective
Rank
B
D
E
Percentile
66
23
12
Objective: Multi-Cap Value
How to read these charts
INFORMATION
Investment
Objective:
Investment Policy:
Multi-Cap Value
The Fund seeks capital appreciation. To a lesser extent, it seeks current
income.
Other Share Classes: MMA Praxis Mutual Funds: MMA Praxis Growth Fund; Class B Shares
Fund Manager
(Tenure):
Horning (since 2000)
Nussbaum (since
2000)
Total Net Assets:
$17.7 Million
Phone:
800-977-2947
Distribution Channel:
Minimum Initial Investment:
Maximum Sales Charge:
$500
5.25%
Maximum Redemption Charge:
Total Expense Ratio:
0%
1.203%
NA
HOLDINGS
Asset Allocation
Stocks
Bond
Other
1.8%
0%
0%
Convertible
Cash/Equiv.
Top Sectors
93.1%
5.1%
Top Holdings
Total Net
Assets
Finance
Electronic Technology
Producer Manufacturing
Consumer Non-Durables
Health Technology
Industrial Services
Retail Trade
Communications
Process Industries
Technology Services
17.1%
16.9
11.6
11.2
11.1
7.1
6.5
6.4
5.2
4.1
DISTRIBUTION HISTORY
Total Net
Assets
FEDERAL NAT'L MRTGE ASSN.
PEPSICO INCORPORATED
PFIZER INCORPORATED
WELLS FARGO COMPANY
TELLABS
WILLIAMS CO. INC.
ST. JUDE MEDICAL, INC.
WILLAMETTE INDUSTRIES INC
PROCTER & GAMBLE CO.
BROADWING INC.
3.7%
3.6
3.3
3.2
2.9
2.9
2.7
2.7
2.6
2.6
(as of 2/28/01)
Income Capital Gains
Year Distribution Distribution
2001
$0
$0
2000
$0
$0.38
1999
$0
$2.14
1998
$0
$0
1997
$0
$0
1996
$0
$0
The Aquinas Funds, Inc.: Aquinas Growth Fund
Enter Symbol:
AQEGX
Friday, March 30, 2001
Source: Lipper Inc.
NET ASSET VALUE
Last:
14.47
Change:
+0.16
Percent
Change:
+1.12%
PERFORMANCE
4-Week:
Year-to-date:
1-Year:
3-Year (annualized):
5-Year (annualized):
Fund Return
-8.0%
-16.9%
-20.6%
4.5%
13.4%
10-Year (annualized):
N/S
52-Week High:
52-Week Low:
22.51
13.94
Vs. all Funds in Objective
Rank
B
B
A
C
B
Percentile
75
76
89
43
69
Objective: Multi-Cap Growth
How to read these charts
INFORMATION
Investment
Multi-Cap Growth
Objective:
Investment
The Fund seeks long-term capital appreciation by investing a diversified portfolio of
Policy:
equity securities that are believed to offer above average potential for growth in
revenues, profits, or cash flow.
Fund Manager
(Tenure):
Total Net Assets:
Minimum Initial Investment:
Team Managed
$64. Million
Phone:
800-423-6369
Distribution
Channel:
Affinity with an
organization
$500
Maximum Sales Charge:
0%
Maximum Redemption Charge:
0%
Total Expense Ratio:
1.41%
HOLDINGS
Asset Allocation
Stocks
93.2%
Convertible
1.5%
Bond
Other
0%
0%
Cash/Equiv.
5.3%
Top Sectors
Top Holdings
Total Net
Assets
Consumer Services
Electronic Technology
Finance
Technology Services
Health Technology
Health Services
Producer Manufacturing
Commercial Services
Retail Trade
Industrial Services
Total Net
Assets
RADIO ONE, INC. CVT 6.5%, 7/15
TENET HEALTHCARE CORP.
GENERAL ELECTRIC CO.
KINDER MORGAN, INC.
PFIZER, INC.
CONCORD EFS, INC.
PAYCHEX, INC.
HEALTH MGMT ASSOC. INC.
CISCO SYSTEMS, INC.
WATERS, CORP.
36.1%
12.1
10.1
7.4
7
5.3
4.9
4.5
3.9
3.1
DISTRIBUTION HISTORY
32.9%
3.5
2.3
1.9
1.8
1.8
1.7
1.5
1.4
1.3
(as of 2/28/01)
Income Capital Gains
Year Distribution Distribution
2001
$0
$0
2000
$0
$2.57
1999
$0
$2.15
1998
$0
$0.85
1997
$0
$2.21
1996
$0
$1.46
http://www.homepage.villanova.edu/john.mcfadden
Amana Mutual Funds Trust: Growth Fund
Enter Symbol:
AMAG
Friday, March 30, 2001
NET ASSET VALUE
Source: Lipper Inc.
Last:
Change:
Percent
52-Week High:
52-Week Low:
11.64
+0.20
Change:
+1.75%
18.69
Vs. all Funds in Objective
PERFORMANCE
4-Week:
Year-to-date:
1-Year:
3-Year (annualized):
5-Year (annualized):
Fund Return
-7.8%
-17.9%
-33.1%
15.0%
15.0%
10-Year (annualized):
N/S
Rank
B
B
B
A
B
11.44
Percentile
77
75
70
92
79
Objective: Multi-Cap Growth
How to read these charts
INFORMATION
Investment Objective: Multi-Cap Growth
Investment Policy:
The Fund seeks long-term capital appreciation consistent with Islamic
principles.
Fund Manager
(Tenure):
Total Net Assets:
Nicholas Kaiser
(since 1994)
$23.8 Million
Phone:
800-728-8762
Distribution
Channel:
Affinity with an
organization
Minimum Initial Investment:
$100
Maximum Sales Charge:
0%
Maximum Redemption Charge:
0%
Total Expense Ratio:
1.45%
Convertible
Cash/Equiv.
0%
0%
HOLDINGS
Asset Allocation
Stocks
Bond
Other
90.8%
0%
9.2%
Top Sectors
Top Holdings
Total Net
Assets
Electronic Technology
Health Technology
Technology Services
Transportation
Total Net
Assets
QUALCOMM (USA)
BUSINESS OBJECTS SA ADR
CISCO SYSTEMS INC
INTUIT INC
33.2%
12.1
11.5
6.9
16.4%
6.1
4.7
4.1
Industrial Services
Commercial Services
Communications
Consumer Services
Producer Manufacturing
Consumer Durables
5.2
5.1
4.8
4.8
3.5
3.4
ADVANCED DIGITAL INFORMATION C
SOUTHWEST AIRLINES INC
SBC COMMUNICATIONS INC (USA)
SYMBOL TECHNOLOGIES INC
CONVERGYS CORP
WILLIAMS COS
DISTRIBUTION HISTORY
(as of 2/28/01)
Income Capital Gains
Year Distribution Distribution
2001
$0
$0
2000
$0.46
$0
1999
$0
$0.22
1998
$0
$0
1997
$0
$0.16
1996
$0
$0.23
Saturday, March 31, 2001
Markets Data Bank at 12:57 p.m.
Closing Stock Data Bank is available using the link at left.
Dow Jones Averages
30 Industrials
20 Transportation
15 Utilities
65 Composite
DJ U.S. Total Market
DJ U.S. Small-Cap
DJ U.S. Mid-Cap
DJ U.S. Large-Cap
New York Stock Exchange
Compositea
Industrialsa
Utilitiesa
Transportationa
Financea
Standard & Poor's Indexes
500 Index
Industrials
Utilities
3.9
3.7
3.4
3.3
3.3
3.3
Last
9878.78
2771.36
381.42
3059.97
267.02
270.09
266.68
265.31
Last
595.66
729.20
394.69
454.83
585.48
Last
1160.33
1330.63
323.57
Change
79.72
17.93
8.25
33.28
2.98
4.45
2.28
2.99
Change
6.98
6.76
5.62
5.57
10.57
Change
12.38
9.98
6.97
Source: Reuters
% Change
0.81 %
0.65
2.21
1.10
1.13
1.68
0.86
1.14
% Change
1.19 %
0.94
1.44
1.24
1.84
% Change
1.08 %
0.76
2.20
400 MidCap
600 SmallCap
Nasdaq Stock Market
Composite
Nasdaq 100
Industrials
Insurance
Banks
Computer
Telecommunications
Other U.S. Indexes
Amex Compositea
Russell 1000
Russell 2000
Russell 3000
Value-Line (geom.)
U.S. Stock
Market Diary
New 52 Week Highs
New 52 Week Lows
Advancing Issues
Declining Issues
Unchanged Issues
Total Issues Traded
Advancing Volume
Declining Volume
Unchanged Volume
Total Volume
Internet Indexes
DJ Composite Internet
DJ Internet Commerce
DJ Internet Services
TheStreet.com Internet
AMEX Interneta
CBOE Internet
Non-U.S. Stock Indexes
Toronto, 300 Index
Tokyo, Nikkei 225
Hong Kong, Hang Seng
London, FTSE 100a
Frankfurt, Xetra Dax
Paris, CAC 40
Brussels, Bel-20
Milan, MIBtel
459.92
204.78
Last
1840.26
1573.25
1230.11
2066.26
1883.23
888.01
328.08
Last
877.04
610.36
450.53
635.67
369.25
3.61
4.22
Change
19.69
10.11
11.20
55.49
39.95
7.36
3.73
Change
15.59
6.63
9.00
7.32
5.66
0.79
2.10
% Change
1.08 %
0.65
0.92
2.76
2.17
0.84
1.15
% Change
1.81 %
1.10
2.04
1.16
1.56
NYSE
94
67
2100
965
206
3271
836,132,260
433,557,220
11,202,380
1,280,891,860
Last
69.70
43.57
86.26
224.20
167.47
155.90
Last
7608.00
12999.70
12760.64
5633.70
5829.95
5180.45
2838.41
25937.00
AMEX
23
35
444
244
98
786
65,773,595
8,443,275
1,458,700
75,675,570
Change
4.32
2.84
5.11
11.10
5.09
6.90
Change
163.22
-72.66
82.75
45.30
-49.35
22.53
76.03
658.00
Nasdaq
122
279
2363
1416
571
4350
1,207,391,940
873,178,460
65,735,897
2,146,306,297
% Change
6.61 %
6.97
6.30
5.21
3.13
4.63
% Change
2.19 %
-0.56
0.65
0.81
-0.84
0.44
2.75
2.60
Zurich, Swiss Market
Amsterdam, AEX
Johannesburg, All Share
Madrid, IBEX 35
Stockholm, General
DJ Stoxx 50
DJ Stoxx 600
DJ Europe/Africa
DJ World Stock Index
Treasury Securities
Two-Year Notec
Five-Year Notec
Ten-Year Notec
30-Year Bondc
Currency Markets
Japanese Yen (per dollar)
Euro (in dollars)
British Pound (in dollars)
Euro/Sterling
Swiss Franc (per dollar)
Commodities
7167.80
558.36
8053.20
9308.30
3867.96
4004.89
321.70
155.00
182.46
Change
6/32
14/32
21/32
25/32
Last
126.25
0.8700
1.4163
0.6140
1.7433
Change
122.90
5.59
-263.00
85.50
-51.10
24.77
1.58
-0.53
0.61
Yield %
4.209 %
4.551
4.915
5.445
Prior Day*
126.21
0.8780
1.4159
0.6197
1.7413
Last
Dow Jones-AIG Commodity Index -1.258
105.399
Goldman Sachs Commodity Index
Gold, April ($ per ounce)d
Gold, June ($ per ounce)d
Oil, May W. Tex, int. ($/bbl.)b
Oil, June W. Tex, int. ($/bbl.)b
S&P 500 Index, Juneb
S&P 500 Index, Sepb
DJ Industrial Average, Juneb
DJ Industrial Average, Sep b
212.74
257.90
259.20
26.70
26.75
1180.50
1184.70
10045.00
9780.00
-2.48
-0.90
-1.20
0.22
0.27
7.50
7.50
95.00
95.00
1.74
1.01
-3.16
0.93
-1.30
0.62
0.49
-0.34
0.34
Settle**
258.80
260.40
26.48
26.48
1180.00
1189.70
10043.00
10124.00
Footnotes:
* Late Friday in New York.
a Delayed 20 minutes.
b Nymex, CBOT, CME and after-hours electronic trading.
c As of 5:30 p.m. EST
d At close of day session on Friday.
** Settle prices for commodity futures reflect the most recent close of trading as
follows:
Gold (Comex) - 2:30 p.m. EST, M-F
Oil (Nymex) - 3:10 p.m. EST, M-F
| Most Active Stocks | Percentage Gainers | Percentage Losers |
| Volume Percentage Leaders | Dow Jones Averages Charts |
| Index to Market Data |
Return to top of page
Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.