Green Mutual Funds and Green Investing

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When discussing Green Mutual Funds and Green Investing, it is important to ask the question ‘what makes them green’

Obvious examples of green investments might include renewable energy (solar power, wind power, etc.) or waste management and reduction technologies.

A less obvious example might be railways.

Railways could be considered green because they are one of the most energy efficient methods of transporting goods.

The purpose of this article is to provide readers with a cursory overview of matters relating to green investing, green investments and green mutual funds.

The information provided here should not be considered professional investment advice.

Always consult with a professional advisor before making any investment decisions.

Here are some examples of well established green investing areas

  • Renewable power/power generation
    • Solar
    • Wind
    • Hydro electric power
    • Tidal power
    • Geothermal power
  • Waste recycling
  • Water
  • Waster water management
  • Energy recovery
  • Smart grid
  • Power management
  • Invest in the key elements required for green technologies- examples might include mining companies that extract gallium, indium, and germanium… key components in the production of solar panel cells
  • Transporation
  • Energy storage
  • Emissions trading

Here are some ideas to help you get started with your green investments

Green Stock Exchange Indices

Most major stock exchanges have at least one index that is focused on the environmental movement.

Investigating these green stock indices is a great source for industries leading companies that could form part of your green investments strategy.

Green ETFs

There are a number of Exchange Traded Funds (ETFs) that have a green focus to them available to investors.

Green ETFs can give investors exposure to green investing themes in a cost efficient manner while offering broader diversification than investing in a single company.

Some green ETFs focus on specific subsectors (renewable energy for example) while some ETFs will offer a number of green subsectors in one fund.

Green Mutual Funds

There are a large number of green mutual funds in the marketplace which are a convenient way for the average investor to invest in the green sector.

Green mutual funds could have investments in a number of green industries or it could be focused exclusively on one industry sector such as renewable energy or water.

A true green mutual fund should employ socially responsible investment principles.

Socially responsible investing (SRI) and green mutual funds information

Below is a summary overview of some of the largest green mutual funds available in the marketplace. Please note the as of date with the summary of each fund as the specific holdings and values in the fund will fluctuate over time.

Green Mutual Fund Directory

Fund Name: Appleseed Fund

www.appleseedfund.com
Symbol: APPLX
Investment Objective: “look to invest in sustainable companies that balance the generation of profits with an awareness of their impact on the environment and society. We seek out responsible managers who operate their businesses with the goal of creating long-term, enduring value.”
Top Holdings: (as of 9/30/2010)

Pfizer10.9%SPDR Gold Shares6.3%John B. Sanflippo & Son6.0%Novartis5.1%Johnson & Johnson5.0%

Value of Fund: $126 million (as of 09/30/2010)

Fund Name: Integrity Growth and Income Fund

www.integrityvikingfunds.com
Symbol: IGIAX
Investment Objective: “Competitive Total Returns;Disciplined Risk Management; Ethical Investment Standards”
Top Holdings: (as of 9/30/2010)

Green Mountain Coffee Roasters Inc.4.81%NewMarket Corporation4.33%Emerson Electric Co.4.01%Snap-on Inc.3.55%Genuine Parts3.40%

Value of Fund: $28.6 million (as of 01/31/2010)

Fund Name: Wells Fargo Advantage Social Sustainability Fund

www.wellsfargoadvantagefunds.com
Symbol: WSSAX; WSRCX
Investment Objective: “The Fund avoids investing in companies that we determine are significantly involved in:

  • manufacturing tobacco products;
  • manufacturing alcoholic beverages;
  • gambling operations; or
  • manufacturing weapons

The Fund will also avoid companies we determine to have weak corporate social responsibility and/or sustainability records. In assessing a company’s corporate social responsibility and/or sustainability record, we consider the full integration of environmental, social and governance related factors into our analysis. The Fund seeks to invest in companies that we determine meet some of the following environmental, social and governance criteria:

  • Have sound corporate governance and business ethics policies and practices, including independent and diverse boards, independent auditors, respect for shareholder rights, and solid legal and regulatory compliance records;
  • Have good environmental compliance and performance records, develop and market innovative products and services, and embrace and advance sustainable development;
  • Provide safe and healthy work environments; negotiate fairly with their workers; treat their employees with dignity and respect; and provide opportunities for women, minorities, and other categories of individuals who have been discriminated against or denied equal opportunities;
  • Contribute to the quality of life in the communities where they operate, such as through corporate philanthropy and employee volunteerism”

Top Holdings: (as of 9/30/2010)

Google Incorporated- Cl A3.60%Emerson Electric Co.3.50%Johnson & Johnson3.27%General Mills Incorporated3.10%Microsoft Corporation3.04%

Value of Fund: $6.2 million (as of 11/30/2010)

Fund Name: Dreyfus Global Sustainability Fund

www.dreyfus.com
Symbol: DGYAX; DGYCX; DGYIX
Investment Objective: “To pursue its goal, the fund normally invests primarily in the stocks of companies that have sustainable operating practices and/or produce sustainable products or services and that meet certain fundamental investment criteria as described below. Companies that maintain sustainable operating practices are those, for example, that use best industry practices in their operations, provide leadership in an industry, offer the highest levels of transparency of operations and/or demand accountability of vendors, suppliers and customers. Companies that produce sustainable products or services are those, for example, that provide services to improve energy efficiency, produce products to meet the highest levels of efficiency and/or provide technologies to improve environmental performance.”
Top Holdings: (as of 10/31/2010)

International Business Machines3.71%Johnson & Johnson3.45%Rio Tinto (Britian)2.81%Intel2.78%Roche Holding AG- Genuss2.63%

Value of Fund: $8.14 million (as of 12/23/2010)

Fund Name: Pax World Global Fund

Pax Global Green Fund
Symbol: PGRNX
Investment Objective: “The Global Green Fund’s investment objective is to seek long term growth of capital by investing in companies whose businesses and technologies focus on mitigating the environmental impacts of commerce.

The Global Green Fund seeks to invest in forward-thinking companies with sustainable business models that meet positive environmental, social and governance standards, with a particular emphasis on environmental markets. The Global Green Fund avoids investing in companies that its investment adviser determines are significantly involved in the manufacture of weapons or weapons related products, manufacture tobacco products or engage in unethical business practices.

The Global Green Fund seeks to invest in companies with positive overall environmental performance and whose products or services help other companies and societies improve their environmental performance. In this regard, the Fund invests in companies whose businesses and technologies focus on goods and services that mitigate the environmental impacts of commerce, including such areas as alternative energy and energy efficiency; water treatment and pollution control; and waste technology and resource management. The Fund avoids investing in companies with significant environmental problems or worsening environmental profiles, and applies avoidance criteria on environmental issues identical to those of the other Pax World Funds.”

Top Holdings: (as of 11/30/2010)

GEA Group AG3.3%Thermo Fisher Scientific Inc.3.3%Pall Corp(Britian)3.2%California Water Service Group3.2%ENN Energy Holdings Ltd.3.1%

Value of Fund: $27.8 million (as of 11/30/2010)

Fund Name: Firsthand Alternative Energy Fund

Firsthand Alternative Energy Fund
Symbol: ALTEX
Investment Objective: “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. Because there are no market capitalization restrictions on the Fund’s investments, the Fund may purchase stocks of any capitalization.”
Top Holdings: (as of 9/30/2010)

JA Solar Holdings Co. Ltd–GT Solar International Inc.–Meyer Burger Technology AG–Trina Solar Limited- Spon ADR–Yingli Green Energy Holding Company- ADR–

Value of Fund: $6.3 million (as of 9/30/2010)

Fund Name: RBC Jantzi Balanced Fund

RBC Jantzi Balanced Fund
Symbol: RBF303
Investment Objective: “To provide long-term capital growth, with a secondary focus on modest income by investing primarily in Canadian, U.S. and international equities and fixedincome securities. The fund follows a sociallyresponsible approach to investing.”
Top Holdings: (as of 11/30/2010)

US Treasury Note 3.125% 15-05-2019 1.5%Ontario Prov Cda 3.25% 08-09-2014 1.5%Barrick Gold Corporation 1.4%Deutsche Bundesrepublik 4.0% 04-01-20181.4%Royal Bank of Canada1.3%

Value of Fund: $32.1 million (as of 12/14/2010)

Fund Name: RBC Jantzi Canadian Equity Fund

RBC Jantzi Canadian Equity Fund
Symbol: RBF302
Investment Objective: “To provide long-term capital growth by investing primarily in equity securities of Canadian companies. The fund follows a socially responsible approach to investing.”
Top Holdings: (as of 11/30/2010)

Royal Bank of Canada 5.1%Barrick Gold Corporation 4.8%Toronto-Dominion Bank 4.4%Potash Corporation of Saskatchewan, Inc.3.8%Bank of Nova Scotia 3.5%

Value of Fund: $31.0 million (as of 12/14/2010)

Fund Name: RBC Jantzi Global Equity Fund

RBC Jantzi Global Equity Fund
Symbol: RBF304
Investment Objective: “To provide long-term capital growth. The fund invests primarily in equity securities of companies throughout the world and follows a socially responsible approach to investing.”
Top Holdings: (as of 11/30/2010)

Consolidated Edison Inc 1.7%Apple, Inc. 1.5%Schindler Holding AG 1.3%Compass Group PLC 1.2%BOC Hong Kong (Holdings) Ltd.1.2%

Value of Fund: $9.8 million (as of 12/14/2010)

Fund Name: TD Global Sustainability

TD Global Sustainability
Symbol: TDB483
Investment Objective: “The fundamental investment objective is to seek to achieve long-term capital appreciation by investing primarily in equity securities of companies around the globe, that are viewed as contributing to the world’s future sustainability.”
Top Holdings: (as of 12/31/2010)

Rio Tinto PLC- Common 3.0%NIKE Inc- Common 3.0%BHP Billiton Ltd- ADR 2.6%BG Group PLC- ADR 2.4%Praxair Inc- Common2.4%

Value of Fund: $11.09 million (as of 12/31/2010)

Disclaimer:
This information should not be construed as professional investment advice. Readers should do their own due diligence and speak with your investment advisor before making any investment decisions.

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Comments

Green Mutual Funds and Green Investing — 2 Comments

  1. I see you list the 2 RBC Mutual Funds, Jantzi Global Equity Fund, and Jantzi Canadian Equity Fund.

    I would not consider these ‘green’ as they are both invested in oil companies such as Suncor and oil pipeline companies like Pembina, which are heavily involved in the Alberta tar sands.

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