By Chris McKnett, Business Development Manager, KLD Indexes

In recent weeks, several investment companies have capitalized on the opportunity to develop new products based on KLD’s Domini 400 Social Index.  The Domini 400 Social Index (DS400), created and managed by KLD Research & Analytics, Inc., is the world’s first socially responsible investing (SRI) benchmark based on environmental, social and governance screens. 

Retail and institutional investors have multiple options to gain exposure to the DS400 now that they have a mutual fund, an exchange traded fund (ETF), and institutional investment options to choose from. 

To date, several firms have launched funds or strategies based on the DS400.  Included among them:

-     Barclays Global Investors launched the iShares KLD 400 Social Index Fund, its second SRI ETF on November 17, 2006.  [Press release link: BGI Announces First SRI Exchange-Traded Fund Based on DS400]

-    Green Century Funds restructured its Equity Fund on November 28, 2006, continuing its 11-year strategy of tracking the DS400 [Press release link: Equity Fund Continues Investing in DS400]

-    Northern Trust began offering its SRI Large Cap Equity Index Strategy on October 31, 2006 through its asset management arm, Northern Trust Global Investments (NTGI). [Press release link: Northern Trust Offers Institutional Large Cap Strategy Tracking the DS400]

-     State Street Global Advisors (SSgA) unveiled its KLD 400 Social Index Series Fund, a commingled fund specifically designed for plan sponsors in the defined contribution space, on November 17, 2006.

“The Domini 400 Social Index has helped define environmental, social, and governance (ESG) standards for U.S. companies over the past 16 years. Today, these new investment opportunities offer fresh options for portfolio construction. We are excited that the DS400 continues to carry a key role in the growing SRI marketplace,” said Peter D. Kinder, president of KLD.

Executives from licensee firms concur. 

Lee Kranefuss, CEO of Barclays Global Investors’ Intermediary and ETF Business, commented on the launch of the iShares KLD 400 Social Index Fund (DSI), “The DSI simply gives investors a cost-effective way to invest in a fund that tracks the highly-regarded Domini Social Index.” 

Said Douglas H. Phelps, Chairman of the Board of the U.S. Public Interest Research Group, one of the organizations that founded Green Century:  “We felt it was important to continue offering this core equity holding to our current investors and to the broader investing public.  We are pleased our shareholders agree.”

“Northern Trust selected the DS400 as the basis for the NTGI SRI Large Cap Equity Index Strategy because of its exposure to both positive and negative screens, its long track record, and its position as the recognized benchmark for social investors. Using the DS400, we created an institutional vehicle that meets risk and return objectives while incorporating ESG factors,” said Priya Khetarpal, Product Manger at Northern Trust Global Investments.

"SSgA recognized the increasing demand by defined contribution plan sponsors for a passive investment strategy that follows the performance of an industry-leading SRI benchmark," said William H. Page, chair of SSgA's environmental, social and governance (ESG) team. "SSgA's KLD 400 Social Index Series Fund incorporates ESG screens for our institutional investors."

To inquire about licensing the Domini 400 Social Index, or for more information about KLD Indexes, please visit www.KLDIndexes.com or contact us at indexes@kld.com.

Copyright © 2007 KLD Research & Analytics, Inc.  All rights reserved.“Domini 400 Social Index” is a service mark of KLD Research & Analytics, Inc.