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In the 2005 piece I had also mentioned Ariel Fund (ARGFX), respected for its efforts to invest based on social responsibility guidelines. Unfortunately, as noted above, it is rough going for such specialized funds. True to the norm, Ariel failed to match, much less beat, the benchmark S&P 500 Index: up 47.17% (from 5/31/05 through 6/30/14) vs. the S&P 500 Index's gains of 64.43% (in the same period).
However, some folks are not so interested in big gains as they are in making money on their investments by means of financial vehicles they can really respect. Regular dollar-cost-average buying of shares in even socially responsibility funds can be rewarding over the long-term. Five mutual funds currently with both good social responsibility and performance credentials are: AMANX; CSXAX; PARNX; PRBLX; and VFTSX.
Among these, I currently prefer Amana Income Fund (AMANX) (recent price $46.12). It has a ten-year average annual return of 11.57%, a 51% better annual gain than the low-cost Vanguard S&P 500 Index Fund, which had a record of 7.66% a year over the past decade. AMANX is a large-cap. value fund that seeks to generate returns through performance plus income. Oddly enough Amana Income Fund has a simple, but for our traditions culturally counter-intuitive set of social responsibility criteria: it invests only in companies consistent with Islamic Law, i.e. those not acquiring more than 5% of their earnings from liquor, gambling, banking, or pornography. AMANX also avoids highly leveraged companies.
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