2011 Money: Ten Green Funds for conscious investors

Green Mutual Funds for Ethical, Sustainable Investing

Ten New Green Funds, by Ted Ketcham, editor of the GreenMoney Journal

1) Appleseed Fund

Although GreenMoney does not rank its ten new funds here, The Appleseed Fund deserves first position, given that both Lipper and Morningstar ranked it as 2008's top performing midcap value fund and SRI fund, respectively.

Investment Objective: The Fund, launched in Dec. 2006, is managed by value investors who seek to generate long-term market-beating returns by investing in quality, undervalued companies screened for social and environmental responsibility.

Investment Strategies: The Fund invests in quality companies that are undervalued by the market. Typically they seek out companies with strong competitive positions, solid financials, and capable, shareholder-friendly management teams. Profits are balanced with social and environmental impacts.

Top Ten Holdings: John B. Sanfilippo & Son (15.3%), Pfizer (8.3%), Chimera Investment Mgmt (6.4%), Schering-Plough (5.3%), Nokia (4.8%), SPDR Gold Shares (4.8%), Avon Products (4.5%), ICT Group (4.3%), Invacare (3.6%), Teradata (3.5%)

For more information go to Appleseed Fund



2) Integrity Growth & Income Fund

Although Integrity Growth & Income Fund has as its inception date January 3, 1995, in February of 2008 Fund Manager Robert Loest published an important White Paper, entitled "Ethical Investing (EI): Invest With The Values You Use In Raising Your Children," which placed the Fund and its new direction more squarely on our radar for important SRI mutual fund options. Also it's rating was recently upgraded to 4 Hearts by Natural Investments (see chart on page 11).

Investment Objective: The Fund seeks to take advantage of fossil fuel scarcity and its solutions, and the development of the middle class in emerging economies, while remaining loyal to human progress issues, social justice, environmental responsibilities, and animal rights.

Investment Strategies: Integrity's three-step methodology, outlined in the White Paper, has been an important tool in meeting the needs of ethical investors to realize positive returns consistent with ESG criteria: 1) Integrity screens for companies with high levels of cash flow and high returns on investment capital. 2) Integrity investigates relevant ethical factors. 3) Upon acceptance, Integrity conducts a full analysis of ESG, Animal Rights, and financial factors.

Top Ten Holdings: H.J. Heinz (5.0%), Agnico-Eagle Mines (4.6%), Ormat Technologies (4.3%), 3M Co. (4.1%), Arthur J. Gallagher & Co. (4.1%), Beckman Coulter (3.9%), Linear Technology (3.5%), Vestas Wind Systems A/S ADR (3.5%), Genuine Parts Co. (3.4%), ABB, Ltd. ADR (3.4%)

For more information go to Integrity Mutual Funds website



3) Wells Fargo Advantage Social Sustainability Fund

Launched in October 2008, the Wells Fargo Advantage Social Sustainability Fund seeks companies with positive environmental, social, and governance (ESG) characteristics, while employing some SRI screens.

Investment Objective: The Fund seeks long-term capital appreciation by investing in securities that meet the Fund's investment and social sustainability criteria.

Investment Strategies: The Fund will employ a two-pronged approach to its investment strategy: The Fund's managers will use an inclusive screening process to invest in companies that have positive traits related to ESG factors, in addition to avoiding stocks-such as alcohol, tobacco, gambling, or weapons manufacturing companies-based on traditional SRI screens.

Top Ten Holdings: BP PLC (4.9%), Procter & Gamble (4.6%), Novartis AG ADR (4.2%), Emerson Electric (3.5%), Johnson & Johnson (3.5%), PepsiCo (3.3%), Nike - Class B (2.9%), Microsoft (2.8%), U.S. Bancorp (2.7%), 3M Co. (2.7%)

For more information go to Wells Fargo Advantage Funds



4) Dreyfus Global Sustainability Fund

Launched in December 2008, the Dreyfus Global Sustainability Fund is managed by John O'Toole, and is among the newest of Dreyfus mutual fund products.

Investment Objective: The Fund, designed for long-term investors, seeks capital growth primarily by investing in the stocks of companies that have sustainable operating practices and/or produce sustainable products or services and that meet certain fundamental investment criteria.

Investment Strategies: The Fund's investments are focused among the major developed markets, such as the US, Canada, Japan, Australia, Hong Kong and Western Europe. The Fund, however, may invest up to 20 percent of its assets in emerging markets, but will not invest more than 10 percent of its assets in any one emerging market country.

Top Ten Country Allocations: US (22.4%), UK (21.5%), Germany (10.9%), Switzerland (6.2%), Japan (6.2%), Spain (6.0%), France (5.2%), Australia (5.1%), Netherlands (4.9%), Canada (4.3%)

Top Ten Holdings: General Electric (3.3%), Glaxosmithkline (3.2%), IBM (2.5%), Royal Dutch Shell (2.4%), Unitedhealth Group (2.1%), Kraft Foods (2.0%), Muenchener Rueckver Ag (1.9%), Axa (1.8%), Hewlett-Packard (1.7%), McDonald's (1.7%)

For more information go to Dreyfus Mutual Funds Group




CALVERT FUNDS

5) Calvert Large Cap Value Fund

With Calvert's new SAGE (Sustainability Achieved through Greater Engagement) approach, Calvert announces "enhanced engagement" with a select group of companies whose investment performance Calvert believes can benefit from a sharper focus on ESG-related risk or opportunity. The Calvert Large Cap Value Fund is the first fund within the SAGE Strategies.

Investment Objective: The Fund, re-launched last December with the SAGE Strategies, was formerly known as Summit Everest Fund, seeks long-term growth of capital by investing in large cap companies.

Investment Strategies: The Fund offers opportunities for long-term growth of capital through large-cap company equity securities that the portfolio manager believes are undervalued. Under normal circumstances, the Fund seeks to have a weighted average market capitalization of at least $10 billion.

Top Ten Holdings: BP PLC (3.1%), AT+T (2.8%), Pfizer (2.8%), Wellpoint (2.7%), Anadarko Pete (2.7%), Royal Dutch Shell PLC (2.7%), ConocoPhillips (2.5%), Marathon Oil (2.5%), Cisco Systems (2.4%), Unilever NV (2.4%)



6) Calvert Global Water Fund

Last September, Calvert launched its latest SRI mutual fund, part of a series of investment portfolios known as Calvert Solution Strategies. Their Global Water Fund, which is driven by declining world supplies and increasing demands for fresh water, seeks to invest in fresh water solutions that include conservation, recovery, and advancing technology.

Investment Objective: The Fund seeks growth of capital through investment in companies active in the water-related resource sector, using the Fund's corporate responsibility standards and strategies.

Investment Strategies: The Fund seeks to invest at least 80 percent of its net assets in equity securities of U.S. and non-U.S. companies whose main business is in the water sector or are significantly involved in water related services or technology.

Top Ten Country Allocations: US (27.9%), Spain (16.4%), UK (10.0%), Germany (7.1%), Portugal (6.9%) Denmark (4.8%), Japan (3.9%), Norway (3.8%), France (3.4%), Belgium (3.2%)

Top Ten Holdings: Veolia Environnement (5.3%), Suez Environnement (5.2%), Roper Inds (4.1%), Pentair (3.6%), Agilent Technologies (3.3%), Severn Trent (3.1%), Layne Christensen (2.8%), Geberit (2.7%), United Utilities G (2.6%), Mueller WTR Products (2.4%)

For more info go to Calvert Mutual Funds Group website



PAX WORLD FUNDS

7) Pax World Global Green Fund

Environmental challenges of the 21st century can mean both threat and opportunity. The Pax World Global Green Fund responds to the widespread environmental degradation on our planet.

Investment Objective: The Fund, launched in March 2008, is seeking long-term growth of capital by investing in companies whose businesses and technologies focus on mitigating the environmental impact of commerce.

Investment Strategies: The Fund will invest primarily in equity securities of companies located around the world, including at least 40 percent of its net assets in securities of non-U.S. issuers. The Fund seeks environmental markets - companies whose businesses and technologies include alternative energy and energy efficiency; pollution prevention and control; and waste technology and resource management.

Top Ten Country Allocations: US (34.7%), Japan (12.1%), UK (7.4%), Spain (6.0%), France (5.6%), Denmark (4.1%), Italy (2.4%), Canada (2.2%), Finland (2.4%), Hong Kong (2.0%)

Top Ten Holdings: Thermo Fisher Scientific (2.5%), Praxair (2.5%), Pentair (2.4%), Novozymes A/S (2.4%), Veolia Environnement (2.4%), Hera SpA (2.3%), Gamesa Corp. Tecnologica (2.3%), EDP Renovaveis SA (2.2%), Pennon Group PLC (2.2%), California Water Service Group (2.1%)



8) Pax World International Fund

For investors seeking to diversify by investing in foreign equities, Pax World launched their International Fund in March 2008.

Investment Objective: This International Fund's investment objective is to seek long-term growth of capital.

Investment Strategies: The Fund invests primarily in equity securities of non-U.S. issuers, and is not limited to any investment style or capitalization range. The Fund may invest in both growth and value stocks. Additionally, investments may be diversified across multiple sectors and industries, or may be focused on a limited number of sectors and industries and also may be diversified across multiple countries or geographic regions, or may be focused on a select geographic region.

Top Ten Country Allocations: Japan (21.2%), UK (11.0%), France (8.0%), Germany (6.8%), Norway (5.7%), Switzerland (5.7%), Netherlands (3.6%), Australia (3.1%), Turkey (2.5%), Greece (2.7%)

Top Ten Holdings: Currency Shares Japanese Yen Trust (4.8%), StatoilHydro ASA ADR (4.0%), Kao Corp. (2.9%), Roche Holding AG (2.6%), Eisai Co., Ltd. (2.4%), Vodafone Group PLC ADR (2.2%), HSBC Holdings PLC ADR (2.2%), Nippon Building Fund REIT (2.1%), Central Japan Railway Co. (2.1%), Veolia Environnement ADR (2.0%)



9) Pax World Small Cap Fund

Pax World also launched the Small Cap Fund in March 2008, which invests in innovative and motivated small but growing companies.

Investment Objective: The Fund seeks long-term growth of capital and invests in smaller companies that offer products, services or business strategies with clear opportunities for sustainable growth and have strong management.

Investment Strategies: The Fund invests at least 80 percent of its net assets in companies with capitalizations within the range of the Russell 2000 Index as measured by market capitalization. The Small Cap Fund may invest up to 45% of its assets in securities of non-U.S. issuers, including ADRs.

Top Ten Holdings: Pharmaceutical Product Development (3.1%), American Physicians Capital (3.0%), Burger King (2.9%), VCA Antech (2.8%), Syniverse (2.8%), Continental Airlines-Class B (2.7%), Hologic (2.5%), Capital Southwest (2.4%), optionsXpress (2.3%), Pool Corp (2.3%)

For more info go to Pax World Mutual funds official website



10) Firsthand Alternative Energy Fund

Launched in October 2007, the Alternative Energy Fund is the most recent edition to Firsthand Funds, which was started in 1994.

Investment Objective: The Fund seeks long-term capital appreciation by investing in alternative energy companies that are expected to benefit from a transition from traditional hydrocarbon-based energy systems to renewable generation and energy efficiency technologies.

Investment Strategies: The Fund invests in alternative energy and energy technology companies, both U.S. and international. Alternative energy includes solar, hydrogen, wind, geothermal, hydroelectric, tidal, biofuel, and biomass. The Fund may purchase stocks of any capitalization.

Top Ten Holdings: 1) Silicon Genesis Corp., 2) SunPower Corp. - Class B, 3) Honeywell International, 4) Echelon Corp., 5) Suntech Power Holdings - ADR, 6) 3M Company, 7) Energy Recovery, 8) Aixtron AG - ADR, 9) Orion Energy Systems, 10) Power Integrations.

The Top 10 holdings represent 37.5% of net assets.


For more info, please visit First Hand Funds mutual funds website


More Ethical Green Investing links:

PV Intell solar energy investing website

Wind Energy Stocks to Watch penny stocks blog

Online Guide to Green Mutual Funds