The Social Investment Forum is touting the performance of socially responsible funds, but the performance message is not yet altering the economics of this fund niche.

The nonprofit trade group points out that 14 of 18 screened funds now receive top ratings from either Morningstar or Lipper. Still, despite the recent performance, these funds have yet to become hot with investors. Only two of the funds tracked by the group have more than $1 billion in assets. Those are the Domini Social index fund ($1.20 billion) and Pax World ($1.17 billion).

The other leaders in the segment are also turning in results that may support a niche effort but are not strong enough to go main stream. Calvert Funds, with a parent company to support its efforts, has only $566 million in its largest fund, according to the group. Chicago-based Ariel, a firm focused on minority investments, has $1.45 billion in its two funds.

Altogether the 46 funds hold $8.44 billion in assets. That leaves the average fund with $183 million in assets, not enough to be profitable at the level diversified asset managers need to support a product. It is also not enough of an asset base to support a mature sales, distribution and marketing effort for the segment.

Yet the average hides even starker problems for the segment. The median assets in these funds are just $51.5 million (half of social funds hold less than this amount).

At that level these funds, with a couple exceptions, remain caught in the "mom-and-pop" stage of business development.

Equity Funds	Inv. Obj.*	Assets in millions	1-Year Average Lipper	3-Year Average Lipper	Morningstar Rating
American Trust Allegiance	GD*	27	-27.01	-3.78	2
Aquinas Growth	XG	61	-16.1A	2.0B	4
Aquinas Value	EI	45	-6.3C	-2.2E	2
Aquinas Small Cap	SC	6	-10.83	-1.44	2
Ariel Appreciation:A	MV	707	16.2B	9.9D	4
Ariel Fund	MV	538	14.2D	11.5D	4
Bridgeway Aggressive Growth	XG	287	-11.2A	30.6A	5
Bridgeway Ultra Small Company	SC	54	34A	25.4A	5
Bridgeway Ultra Large 35 Index	GD*	6	-9.06	0.2	3
Bridgeway Ultra Small Index	SCG*	24	23.98	17.96	5
Calvert Capital Accumulation: A	MG	126	-12.9B	.6D	3
Calvert Social Invest. Equity Enhanced	LC	34	-10.2A	.2B	3
Calvert New Vision Small Cap A	SC	96	7.6C	13.4B	4
Calvert Social Equity:A	XC	298	.7A	11.4A	3
Citizens Emerging Growth	XG	231	-33E	3.8C	4
Citizens Core Growth	LG	417	-18.2B	-6.2D	3
Delaware - Social Awareness A	XC	26	-10.6C	-3.3E	2
DEVCAP Shared Return	GD*	17	-13.06	-1.71	4
Domini Social Equity: Retail	LC	1207	-12.8C	-3.1D	4
Dreyfus Premier Third Century:Z	LG	850	-23.7C	-4.7D	2
Flex Funds-Total Return Utilities	UT	29	-14.6A	7.3A	4
Flex Partners-Utility	UTL*	3	-14.94	2.25	NR
Green Century Equity	LC	34	-13.3C	-3.7D	3
MMA Praxis Core Stock Fund: B	XC	139	-8.5A	.5B	3
Meyers Pride Value (Citizen's Value)	XV	18	13.4A	13.3A	5
Neuberger&Berman Socially Responsible: In	XV	85	-2.6C	1.3D	3
New Alternatives Fund	SE	47	-12.4E	13.0A	2
Noah Fund	LG	12	-23.3C	-10.4E	2
Parnassus Fund	MV	400	7.8A	17.6A	5
Parnassus Equity Income Fund	EI	77	10.0A	12.8A	5
PAX World Growth Fund	XG	25	-23.0E	-6.1E	2
Security Social Awareness: A	GD	12	-13.1A	-4.2C	2
Women's Equity Fund	XG	11	-3.2A	2.5C	4
Global/International Equity Funds	Inv. Obj.*
Calvert World Values  International Equity:A	IL	159	-23.8D	-6.6E	3
Citizens Global Equity: Strd	GL	187	-29.0E	-.1C	4
MMA Praxis International	IL	22	-25.9D	-5.8D	2
Balanced/Blended Stock & Bond Funds	Inv. Obj.*
Calvert Social Balanced:A	BL	566	-5.4C	-.5D	3
Green Century Balanced	BL	58	-13.6E	19.9A	4
Pax World Balanced Fund	BL	1176	-9.1E	4B	4
Fixed Income Funds	Inv. Obj.*
Aquinas Fixed Income	AB	49	9.3A	5.4B	3
Calvert Social Bond:A	AB	102	13.4A	6.6A	3
Citizens Income Fund	IB	77	4.4E	3.5E	3
Eclipse Ultra Short Term Income	UT*	31	6.33	5.68	5
MMA Praxis Intermediate Income: B	IB	36	6.2E	3.9E	3
Parnassus Income CA Tax-Free	SS*	20	3.09	4.12	5
Parnassus Income Fund	BD*	14	11.31	3.57	3

Source: The Social Investment Forum
NOTES FOR CHART: All funds are at least three years old as of 9/30/01. The majority of fund objectives are from Lipper. All funds marked with an asterisk are not tracked by Lipper and are described by Wiesenberger's categories. The symbol (w) accompanies performance data in the Lipper 1-year and 3-year categories for these funds. NR indicates not rated/ranked by Lipper or Morningstar or Wiesenberger.

Objectives Key (Lipper Analytical Services):

AB = Long-Term Bond: Corporate A-rated; Corporate BBB-rated bonds.

BL = Balanced: A balanced portfolio of both stocks and bonds with the primary objective of conserving principle.

EI = Equity Income: Funds that seek high current income and growth of income through investment in equities.

GL = Global Stock: Funds that invest in securities traded outside of the U.S. May own U.S. securities as well.

IB = Intermediate Bond: Investment grade corporate debt (top four grades) with dollar-weighted maturities of five to 10 years.

IL = International: Canadian; International; and International Small Cap.

 

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