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BOSTON,
MA - May 10, 2006 - KLD Research & Analytics, Inc. marked the 16th
anniversary of its landmark index, the Domini 400 SocialSM
Index (DS 400) on May 1st. The Domini 400 Social
Index is the accepted benchmark for socially responsible investors.
It is made up of 400 US companies that pass multiple, broad-based
social and environmental screens.
This
year KLD made 21 changes to the Domini 400. The index team added
two companies that address climate change -- Energy Conversion Devices
and Ormat Technologies. Two companies that produce beneficial healthcare
products were added. One of these, Gilead, derives 70% of its revenue
from the sale of HIV drugs. Finally, KLD added NIKE and Chiquita.
In the past both companies suffered from supply chain issues, but
NIKE and Chiquita made major efforts to improve upon this and it
is reflected in their addition to the DS 400.
"With
each year the Domini 400 Index tells us more about the performance
of socially screened portfolios. It has shaped how investors and
companies look at social and environmental standards for companies,"
said Peter D. Kinder, KLD's president and co-founder. "We expect
that the Domini 400 Index has more to teach us about portfolio performance.
We know it will continue to play an important role in the dialogue
between investors and the companies they own."
Thomas
Kuh, Managing Director of KLD Indexes said, "The Domini 400's great
accomplishment has been to provide solid data on the financial performance
of socially screened portfolios. Investors, trustees and academics
can now make their judgments based on real numbers. Our challenge
now is to respond to the new questions about risk and return that
institutional investors are asking.
Here
are the Domini 400's performance numbers through April 30, 2006:
| |
Month |
1st
Q 2005 |
YTD |
One
Year |
Three
Year* |
Five
Year* |
Ten
Year* |
Since
5/1/90
Inception* |
|
KLD's
DS 400 Index
|
0.38% |
3.54% |
3.93% |
14.36% |
13.16% |
2.59% |
9.35% |
12.03% |
|
S&P
500
|
1.34% |
4.21% |
5.61% |
15.41% |
14.68% |
2.70% |
8.95% |
11.31% |
|
|
Source:
Dow Jones & Co. and Standard & Poor's |
*Annualized Returns
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In
1990, an investor who wanted to apply more than one simple screen
– tobacco, South Africa, gambling -- had a difficult time applying
the screens and producing a "buy" list. Where it was
possible at all, the resulting lists held few companies. This
proved a major barrier for individual and institutional investors.
With
the launch of KLD's Domini 400 Social Index, investors had a significant
screened universe with which to work. Because of variations in screening
choices and tolerances, one group of choices did not fit all. But
just having a list from which to start marked a huge advance.
"I'm
very proud of what KLD has accomplished with the Domini 400,"
says Kinder. "Its performance allows investors to make the
case for social investing. Its screens have largely defined how
corporate social performance is gauged by the public."
About
KLD Indexes
KLD Indexes,
a division of KLD Research & Analytics, Inc., constructs indexes
for investors who integrate environmental, social and governance
factors into their investment decisions. Investors, trustees and
consultants depend on the quality and integrity of KLD Indexes,
which are designed to be transparent, representative and investable.
Today,
more than $10 billion is invested in funds based on KLD's family
of indexes.
For more information about KLD's Indexes, please see
our website (www.KLDIndexes.com)
or contact Chris McKnett by phone (617.426.5270 x218) or e-mail
(cmcknett@kld.com).
About KLD
Research & Analytics, Inc.
KLD
Research & Analytics, Inc. is an independent investment research
firm providing investment management tools used by professionals
to serve clients requiring investment strategies based on social
and environmental responsibility.
Since
1988, institutional investors, managers, trustees, consultants and
advisors have depended on the quality and expertise of KLD. Institutional
money managers worldwide use KLD's research to integrate environmental,
social and governance factors into their investment decisions.
KLD
products and services, including SOCRATES (a web-based, company
research tool) are used for screening, compliance and asset gathering.
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