Natural Investing

Since 1992, the NI Social Rating^SM (the Rating) has been the leading tool investors can use to get a snapshot of sustainable and responsible mutual funds' environmental, social, and governance (ESG) performance. As there are no universal ESG standards, funds use varied criteria, formats, and language to describe their approach. Some may screen out only tobacco companies, some incorporate numerous avoidance and affirmative screens, while others engage in shareholder advocacy and community development investing. To address this diverse continuum, the Rating uses objective, standardized criteria to award funds  to , similar to the Morningstar® rating that measures financial performance. The Rating provides an overview of the breadth and depth of social responsibility criteria applied by each fund, but it does not evaluate each holding within a fund, so investors are urged to consult a fund's website, quarterly reports, and annual reports to review its holdings.

The Rating methodology, based on a questionnaire and prospectus information, addresses avoidance and affirmative screening, shareholder advocacy, community investing, and the firm’s research process. The manager's application of each element is weighted and scored, and then the funds are ranked. Those in the lowest percentile group (0-20%) are awarded , those in the highest percentile group (81-100%) . It is not uncommon for funds to rate differently over time given changes in their social responsibility policies. The chart below lists funds in order of overall Rating, and also includes ratings of each of the underlying three categories so you can see where funds are strongest.

The Rating does NOT include any consideration of financial performance, so some sources for SRI fund performance data include www.socialfunds.com, www.ussif.org, and www.greenmoney.com. A fund could earn from NI and still have a poor financial track record, while a fund with a or rating that addresses a limited number of social issues may be a very desirable investment to build a diversified portfolio of SRI mutual funds, or it may address issues of special relevance to a particular investor, such as religious values. Investors would be wise to discuss these variables with a financial professional to assure that you have a good match for your personal social criteria, risk tolerance, and financial expectations.

Avoidance and Affirmative Screening. Some managers have absolute criteria that automatically trigger exclusion of a holding, while others use a best-in-class approach to select the best company in a given sector rather than omit the entire sector. Other funds proactively seek outstanding leaders in certain ESG areas or sectors. Best-in-class, while important, is not rated as highly as avoidance screening, which is not valued as highly as affirmative screening.  Conducting comprehensive analysis to select companies immersed in responsible and sustainable behaviors deserves special recognition, so affirmative screening practices are weighted more heavily in the Rating. ESG screening represents nearly 60% of the total score.

The Rating includes over 40 ESG criteria, categorized by theme: "vices" (alcohol, firearms, gambling and tobacco), environment, employment, corporate governance, product quality and safety, military contracting, animal rights, health issues, and community relations and international human rights.

Shareholder Advocacy. The use of shareholder dialogue and action is one of the most direct and powerful tools for bringing about changes in corporate behavior and policy with regards to the environment, employment practices and corporate governance.  Each fund is evaluated for its participation in dialogue with companies, drafting and supporting shareholder resolutions, and involvement in public policy efforts. Advocacy comprises 18% of the total score.

Community Investing. Funds are evaluated on the impact of their cash positions. Allocations to community develpment financial institutions, municipal bonds in low-income communities and non-insured targeted investments such as microcredit institutions in emerging markets are given high marks, while agency securities and corporate bonds score lower.  Community investing comprises 18% of the total score.

FUND NAME	OVERALL HEART RATING	SHAREHOLDER ADVOCACY	COMMUNITY INVESTING	ESG SCREENING
Access Capital Community Investment	not rated	not rated		not rated
CRA Qualified Investment Fund	not rated	not rated		not rated
Calvert Aggressive Allocation Fund
Calvert Balanced Portfolio
Calvert Bond Portfolio
Calvert Capital Accumulation Fund
Calvert Conservative Allocation Fund
Calvert Enhanced Equity Portfolio
Calvert Equity Portfolio
Calvert International Equity Fund
Calvert International Opportunities Fund
Calvert Moderate Allocation Fund
Calvert Small Cap Fund
Calvert Social Index Fund
Domini Social BondFund
Green Century Balanced Fund
Green Century Equity Fund
New Alternatives Fund
New Covenant Balanced Growth Fund*
New Covenant Balanced Income Fund*
New Covenant Growth Fund*
New Covenant Income Fund*
Pax World Balanced Fund
Pax World High Yield Bond Fund
Praxis Core Stock Fund*
Praxis Growth Income Fund*
Praxis Intermediate Income Fund*
Praxis International Index Fund*
Praxis Small Cap Fund*
Praxis Value Index Fund*
Walden Balanced Fund
Appleseed Fund
Boston Common International Fund
Domini International Social Equity Fund
Domini Social Equity Fund
Eventide Gilead Fund*
Neuberger Berman Socially Responsive
Parnassus Equity Income Fund
Parnassus Fixed Income Fund
Parnassus Fund
Parnassus Mid-Cap Fund
Parnassus Small Cap Fund
Parnassus Workplace Fund
Pax World Global Green Fund
Pax World Growth Fund
Pax World International Fund
Pax World Small Cap Fund
Portfolio 21
Walden Equity Fund
Walden Mid-Cap Fund
Walden Small Cap Innovations Fund
Winslow Green Growth Fund
Calvert Alternative Energy Fund
Calvert Global Water Fund
Epiphany FFV Fund*
Epiphany FFV Latin America Fund*
Epiphany FFV Strategic Income Fund*
Epiphany Large Cap Core Fund*
Gabelli SRI Green Fund
Legg Mason Social Awareness Fund
Northern Global Sustainability Index Fund
Pax World Global Women's Equality Fund
Sentinel Growth Opportunities Fund
Sentinel Sustainable Core Opportunities
Amana Developing World Fund*
Amana Growth Fund*
Amana Income Fund*
Ariel Appreciation Fund
Ariel Discovery Fund
Ariel Focus Fund
Ariel Fund
Ariel Global Equity Fund
Ariel International Equity Fund
Azzad Ethical Fund*
Azzad Wise Capital Funds*
Calvert Equity Income Fund
Calvert Large Cap Value Fund
CNI Charter Socially Responsible Equity
DFA US Social Core Equity 2 Portfolio
DFA US Sustainability Core 1 Portfolio
LKCM Aquinas Growth Fund*
LKCM Aquinas Small Cap Fund*
LKCM Aquinas Value Fund*
Schroder Emerging Market Equity Fund
TIAA-CREF Social Choice
Vanguard FTSE Social Index
Alger Green Fund
American Trust Allegiance Fund
Ave Maria Bond Fund*
Ave Maria Catholic Values Fund*
Ave Maria Growth Fund*
Ave Maria Opportunity Fund*
Ave Maria Rising Dividend Fund*
Ave Maria World Equity Fund*
Dreyfus Third Century Fund
DWS GNMA Fund
Flex Utilities & Infrastructure Fund
Integrity Growth & Income Fund
Pimco Low Duration Fund
Timothy Aggressive Growth*
Timothy Conservative Growth*
Timothy Defensive Strategies Fund*
Timothy Fixed Income*
Timothy High Yield Bond*
Timothy International *
Timothy Israel Common Values Fund*
Timothy Large/Mid Cap Growth*
Timothy Large/Mid Cap Value*
Timothy Small Cap Growth*
Timothy Strategic Growth*
Touchstone Premium Yield Equity
USAA First Start Growth Fund

* Funds with an asterisk use additional faith-based criteria that are not part of this Rating; see the fund's prospectus for ESG information.

For individual fund performance, visit the mutual fund performance center at socialfunds.com

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