CHICAGO -- Socially screened funds met fiduciary criteria better than non-screened funds, according to new research from the Investment Management Council, Chicago, released at a social investment conference in New York in late June.
Seven percent of all socially screened funds, or five, passed IMC's criteria, while only 5%, or 485, of non-screened funds passed all of the fiduciary hurdles, said Donald B. Trone, president of the IMC.
IMC applied the following criteria to the approximately 10,000 mutual funds in Morningstar's Principia Pro data base: consistent style strategy; consistency of securities in the portfolio with the investment strategy; portfolio manager tenure; assets under management; performance relative to peer funds; risk-adjusted performance; expense ratios relative to peer funds; and organizational stability.
The five socially screened funds that passed the IMC's eight hurdles were: Citizens Emerging Growth; Calvert Capital Accumulation; Calvert World Values International; Domini Social Equity; and Smith Barney Concert Awareness funds.
