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Mutual fund says 10-year financial performance tied to corporate environmental performance
Submitted by: Portfolio 21 Investments
Posted: Jan 21, 2010 – 01:43 PM EST
PORTLAND, Ore., Jan. 21 /CSRwire/ - Global mutual fund Portfolio 21 (PORTX) today announced its Top 10 Green Companies. For the past 10 years, Portfolio 21 has searched the world and invested only in companies with an explicit commitment to environmental business practices, such as designing ecologically superior products, using renewable energy, developing efficient production methods, and reducing greenhouse gas emissions. The success of the green strategy has resulted in competitive financial performance for investors over the past 10 years (see performance table below).
"More and more investors are paying closer attention to ecological trends and their affects on financial performance," said Leslie Christian, CEO of Portfolio 21. "As investment managers, we believe climate change and resource consumption will have an enormous impact on the global economy in the coming years; companies that are already addressing the risks and opportunities presented by these environmental trends should have a competitive advantage."
During the past 10 years, Portfolio 21 has reviewed more than 2,000 companies worldwide. It invests $323 million in 105 companies across 20 countries. Portfolio 21’s Top 10 Green Companies have been selected based on their environmental performance characteristics:
Autodesk: A leading developer of two and three dimensional design software that facilitates sustainable building practices. Autodesk software products decrease waste and impacts of design processes by reducing paper consumption and encouraging superior design. Autodesk has recently partnered with the U.S. Green Building Council with a goal of integrating its technology with the Leadership in Energy and Environmental Design (LEED) rating system.
East Japan Railway: Railways are inherently efficient land-based transportation, and EJR continually works to reduce its power consumption. It has introduced reduced-weight railcars, developed the world's first hybrid prototype train, and is installing solar and wind systems at some of its "eco stations." The company is also working to reduce the carbon dioxide emissions of the entire transport system by promoting inter-modal transportation-combining rail with other modes of travel.
Henkel: This German manufacturer in 1983 became the first company to offer a phosphate-free detergent. Henkel now produces a wide range of bio-based detergents and adhesives, reducing the company's reliance on fossil fuels, as well as potential environmental health hazards. More than two-thirds of its products' formulations are based on renewable raw materials. All new products are required to contribute to sustainable development.
Itron: This U.S. energy management company provides metering, data collection, and software solutions to optimize resources for nearly 8,000 utilities worldwide. Products include an advanced metering infrastructure system that permits two-way communication between utilities and customers, allowing end-use customers to participate in demand response and energy conservation programs.
Natura Cosmeticos: A Brazilian cosmetics company focusing on the sustainable use of natural resources and respect for local cultural traditions, Natura establishes partnerships with rural suppliers, indigenous communities and family farm groups. The company promotes development and discovery of new and renewable raw materials, and supports organic and biodynamic production models and sustainable agriculture and agroforest systems.
Potlatch: A U.S.-based integrated forest products company, Potlatch is emerging as a leader in the domestic sustainable forestry industry. The company recently achieved Forest Stewardship Council (FSC) certification for all its forestlands (approximately 50% of the company's total fiber needs). Potlatch also recognizes "non-traditional" values in its forestlands, including business opportunities in recreation leases and conservation easements.
Red Electrica: As Spain's leading power transmission company, Red Electrica is responsible for the management of its country’s electricity distribution system. Over the past several years, Spain has become the second-largest European wind-power producer and expects to have wind farms producing 13,000 megawatts by 2011.
Sharp: A Japanese consumer and industrial electronics company, Sharp focuses on products that offer energy efficiency, resource efficiency, and ease of recycling. Sharp is the world's largest producer of solar cells and is one of just a few industry leaders to support a solution to e-waste in the United States. Sharp classifies its manufacturing facilities as "super green" or "green."
Umicore: Based in Belgium, Umicore is a basic materials company and the world's leading recycler of precious metals. Approximately half of the company's revenues are generated through products that provide direct environmental benefits. Examples include materials for rechargeable batteries, fuel cells, and auto catalysts (which reduce harmful pollutants from vehicles).
Vestas: By capturing the energy available in wind currents, power can be generated with essentially zero emissions to the environment. Vestas, a Danish company, develops, manufactures, and markets wind energy products. This company has a clear sustainability strategy based on manufacturing equipment and operating facilities for the renewable energy sector.
10-Year Financial Performance
Portfolio 21's 10-year financial performance and green investing approach have attracted attention among retail and institutional investors. The Wall Street Journal recently cited Portfolio 21's established track record, noting that it is one of the few green funds "broad and diversified enough to be used as a core holding in an investment portfolio." ("The Price of Green," The Wall Street Journal, 10/5/09). A profile on each company illustrating the green approach is available at www.portfolio21.com.
| FUND PERFORMANCE as of 12/31/09
|4th Qtr 2009||1 Year||3 Years||5 Years||10 Years||Since inception (9/30/99)|
|MSCI World Index||4.18%||30.80%||-5.09%||2.57%||0.23%||1.77%|
|S&P 500 Index||6.04%||26.46%||-5.63%||0.41%||0.95%||0.42%|
Expense Ratio: 1.54%
Periods over one year are annualized.
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance date current to the most recent month-end may be obtained by calling 877-351-4115 or by visiting www.portfolio21.com. The Fund will assess a 2.00% fee on certain redemptions for shares purchased and held for less than 2 months. Performance data does not reflect the redemption fee. If it had, returns would be lower.
Portfolio 21 returns are compared with the MSCI World Equity Index. We use this index as a benchmark because Portfolio 21 is a global fund, investing in stocks throughout the world. Portfolio 21 does not attempt to replicate the MSCI World Equity Index. However, comparing performance results with a benchmark is helpful to identify relevant market conditions and fluctuations. The MSCI World Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. The S&P 500 Index is a broad-based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. One cannot invest directly in an index.
Mutual fund investing involves risk. Principal loss is possible. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund also invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Fund's environmental policy could cause it to make or avoid investments that could result in the Fund underperforming similar funds that do not have an environmental policy
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 877-351-4115, or visiting http://www.portfolio21.com. Read it carefully before investing.
Investment performance reflects fee waivers in effect. In the absence of such waivers total return would be reduced.
The information provided herein represents the opinion of Portfolio 21 management, and is not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
As of 12/31/09, the companies listed above were held in Portfolio 21 in the following percentages: Autodesk: 0.9%, East Japan Railway: 1.0%, Henkel: 1.9%, Itron: 0.3%, Natura Cosmeticos: 0.6%, Potlatch: 1.0%, Red Electrica: 0.9%, Sharp: 0.9%, Umicore: 0.5%, Vestas: 1.4%.
Distributed by Quasar Distributors, LLC. (1/10)
About Portfolio 21 Investments:
Portfolio 21 Investments has been a pioneer in the field of environmental and socially responsible investing since 1982. In 1999, the company launched the Portfolio 21 mutual fund to address the ecological risks and opportunities of the investment process in the 21st century. Portfolio 21 Investments is based in Portland, OR and has approximately $500 million in assets under management.
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For more from this organization:Portfolio 21 Investments