By Maxine Shapiro, KERA 90.1 Commentator
Dallas, TX – Alright, you environmentally friendly investors or want-to-be investors - you can now put your money where your mouth is. I'm Maxine Shapiro with KERA Marketplace Midday.
Earlier this month, the Sierra Club launched two new socially responsible investing (SRI) mutual funds. Now, before you start disparaging SRIs, there's a detail critics like to forget: SRIs are around to make money. They want to see your kids go to college too. The added bonus - why not feel good about what you're investing in? I believe we've witnessed enough of greed as the only motivator.
So the Sierra Club Stock Fund and the Sierra Club Balanced Fund were initiated to exclude companies with poor environmental performance. The funds are managed by San Francisco-based Forward Management. According to Socialfunds.com, "Forward Management will pay a portion of its management fees to the Sierra Club for identifying securities that meet the established environmental screening guidelines." Sierra Club can then use this money to support their environmental activism. If you're uncomfortable with the term "activism," just remind yourself of the huge corporate lobbyists and all their money fighting for their vested interests.
Here are just a few criteria for the funds: no genetically modified organisms, no forestry, no extraction (nothing taken out of the earth), no military weaponry, and no automobile companies. But unlike a lot of SRIs, the Balanced Fund will invest in U.S. Treasury Bonds. These bonds are usually avoided - some funds find their way into the Department of Defense. Defending this investment, the Sierra Club told Socialfunds.com, "All Americans rely on our government to crack down on polluters and enforce our environmental laws, and we think it is important to invest in those efforts." Although there are few disagreements with the current administration.
A couple of the companies they are investing in: Estee Lauder, owners of Aveda, for their strict environmental guidelines; and Dell Computer for their strong environmental leadership. Not shabby companies.
For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m. Email Maxine Shapiro.