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Most Extensive Socially Responsible 401(k) Program, 'Social(k),' Signs Parnassus Investments as 15th Client

Most Extensive Socially Responsible 401(k) Program, 'Social(k),' Signs Parnassus Investments as 15th Client

Published 03-24-06

Submitted by Social(k)

San Francisco - Social(k), the most extensive 401(k) program of socially responsible investment (SRI) funds offered, today announced it had signed up San Francisco-based Parnassus Investments, one of the nation's largest socially responsible investment fund managers and itself part of the Social(k) program. The company will now be offering the full array of funds in the Social(k) platform to its employees. Parnassus Investments is the 15th company to sign up with Springfield, MA-based Social(k) since the program was launched just six months ago, in September 2005.

Social(k) is a unique program in that it includes more than 60 screened socially responsible funds (far more than the usual one or two in other retirement programs). In addition Social(k) offers over 500 traditional non-screened funds from 40 mutual fund companies to provide choice in determining a retirement portfolio mix. In keeping with its own mission of social responsibility, Social(k) offers web-based recordkeeping and administration via the Internet by East Windsor, New Jersey-based retirement administrator ExpertPlan, thus dramatically reducing the use of paper.

"Offering Social(k)'s wide array of socially responsible funds makes sense for companies with the concept of sustainability or social responsibility in their mission statements" says Social(k) Founder and President Robert Thomas, who will be giving a presentation on Social(k) on Thursday, March 23, at 5:30 p.m., at the Bay Area Social Investment Forum meeting at the Sierra Club Mutual Funds office in San Francisco, CA (433 California Street, on the 11th floor). "Social(k) allows socially conscious retirement investors to profit while maintaining their principles."

And profit they can. Data from KLD Indexes, which created the Domini 400 Social Index as a benchmark to track SRI performance, shows that in the 12 months leading up to February 28, 2006, the Domini 400 was up 8.90 percent, versus 8.40 percent for the S&P 500 Index. Socially screened fund returns can exceed the returns of typical funds because they screen out many of the companies that can otherwise negatively affect a conventional fund's returns.

Socially responsible funds use both positive and negative screens within the context of rigorous financial analysis. Positive means the companies in the fund may support alternative energy, or have a strong record on human rights and labor issues, among others, while negative screens may exclude companies involved with alcohol, cigarettes, guns, or nuclear power as well as those with egregious human or labor rights or environmental problems.

According to a 2002 Calvert/Harris Interactive® survey, less than one-third (32 percent) of employees have access to socially responsible funds, yet more than two-thirds (68 percent) of employees with the option invest in such funds. In addition, the report shows that nearly three-quarters (74 percent) of employees who do not have SRI funds offered in their retirement plan would invest in them if they were offered.

Social(k) has been well received by the financial advisor community; almost 300 financial advisors have already signed up to use the plan in just the first six months of the program.

Other mutual fund companies participating in the Social(k) platform include: Abacus Bull Moose Growth Fund (Indianapolis, IN), Calvert Funds (Bethesda, MD), Citizens Funds (Portsmouth, NH), Domini Social Investments (New York City, NY), MMA Praxis Mutual Funds (Goshen, IN), Portfolio 21 (Portland, OR), and Sierra Club Mutual Funds (San Francisco, CA) and Women's Equity Mutual Fund (San Francisco, CA).

For more information, including a list of all fund families, see www.socialk.com

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Social(k)

Social(k)

Social(k) is a retirement plan platform with over 200 Environmental, Social and Corporate Governance, ESG, screened funds, rather than the usual one or two. In addition Social(k) offers over 2000 traditional funds to provide employees greater choice when determining portfolio mix. Social(k) is the first choice for mission driven organizations operating in a sustainable manner. Social(k) works with your existing advisor or we can refer someone from our network of over 500 advisors. Whether you have a plan or are just looking to offer one let us show you how we offer a sustainable investing advantage to your employees.

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