Socially Responsible Funds - Second Quarter Performance

On a quarterly basis mutual funds that fall into Morningstar’s socially responsible investing category improved in performance during the second quarter vs. the universe of funds that Morningstar follows, but on average didn’t shine in their respective categories.

Socially responsible investing funds were up 16.49 percent on average for the three-months ending June 30. Overall they finished in the 49th percentile of Morningstar funds, meaning that the performance of those funds placed them just barely into the top half of their categories on average.

But as always there is a wide range of results in total return among the funds that fall in the SRI category. One exceptional fund is the Appleseed Fund (APPLX), which was up 26.80 for the quarter and 24.84 percent year-to-date through the end of June. That put it at the top of Morningstar’s list of all mid-cap value funds. The Appleseed Fund is a no-load fund with a 0.90 expense ratio and about $27 million in assets under management.

Another fund that that had a strong quarter was the Parnassus Workplace (PARWX), which was up more than 26 percent for the three months, putting it in the first percentile for large cap growth funds. Year-to-date the fund, which invests in companies that have “great workplaces for their employees,” according to the firm, is up 23.2 percent, 14th among all large-cap growth funds. Parnassus Workplace is a no-load fund with about $34 million in assets under management.

Winslow Green Growth (WGGFX), a small-cap growth fund that invests primarily in environmentally sustainable companies, was up 36 percent for the quarter, placing it in the second percentile for small-cap growth funds. Winslow defines sustainable companies as those with “clean and efficient business practices that seek to minimize their environmental impact, or companies whose products or services offer solutions to environmental problems.” Like many environmental funds, Green Growth has not done so well longer-term, down 39 percent on a 12-month total return basis, placing it in the 95th percentile of small-cap growth funds.

Among the funds that did not rank as well for the second quarter was Calvert’s Mid-Cap Value (CMVAX), down 11.34 percent but in the 95th percentile among mid-cap value funds for the period, though in the 44th percentile on a 12-month basis; the CRA Qualified Investment fund (CRAIX), up 0.71 percent for the quarter which put it in the 97th percentile among Morningstar’s intermediate-term bond funds, though still up 6.50 percent for the prior 12 months and in the 17th percentile over that period; and the Integrity Growth & Income fund (IGIAX), which was up 9.9 percent for the quarter, putting it in the 97th percentile for mid-cap blend funds. Over a 12-month period Integrity was down 26 percent, putting it in the 36th percentile.