|
BOSTON,
MA - July 07, 2005 - KLD
Research & Analytics, Inc. announced today the reconstitution
of its KLD Broad Market SocialSM
Index (KLD BMSI) and its KLD Large Cap SocialSM
Index (KLD LCSI).
The KLD LCSI and KLD BMSI, based respectively on the Frank
Russell Company's Russell 1000®
Index and Russell 3000®
Index, define universes of companies appropriate for social
investors, act as benchmarks for evaluating the financial
performance of socially screened portfolios and serve
as a basis for passive investment products.
The 2005
Indexes
This
year, 688 Russell 1000 companies are listed on the KLD
LCSI compared to 716 in June 2004; 2,279 Russell 3000
companies are listed on the June 2005 KLD BMSI compared
to 2,348 last year.
As
of June 30, 2005 the five largest holdings in the two
indexes are Microsoft Corporation (MSFT); Johnson & Johnson
(JNJ); Intel Corporation (INTC); American International
Group, Inc. (AIG) and Procter & Gamble Company (PG). Proctor
& Gamble replacing Cisco Systems Inc. (CSCO) as the fifth
largest is the only change in the top five from 2004.
The
smallest company in the reconstituted KLD LCSI is CKX
Inc. (CKXE). The June 2005 BMSI's smallest company is
Tiens Biotech Group USA (TBV). Last year, the smallest
companies were Eyetech Pharmaceuticals (EYET) and Sports
Resorts International Inc. (SPRI), respectively.
Index
Characteristics as of 6/30/05
|
|
KLD
BMSI
|
KLD
LCSI
|
|
Total
Market Cap*
|
8,407,240
|
7,489,945
|
|
Mean
Market Cap*
|
3,689
|
10,887
|
|
Median
Market Cap*
|
740
|
4,042
|
|
Smallest
Market Cap*
|
27
|
216
|
|
Largest
Market Cap*
|
230,002
|
230,002
|
|
Dividend
Yield
|
1.32
|
1.34
|
|
P/E
|
31.23
|
24.40
|
|
P/B
|
4.38
|
4.44
|
|
*
Market Capitalization in $ Millions
Source: FactSet Research Systems and Russell/Mellon
Analytical Services
The
Reconstitution Process
The
Russell 3000 Index consists of the 3,000 largest US-incorporated
companies, measured by market capitalization, while
the Russell 1000 is made up of the 1,000 largest companies
in the Russell 3000. Each May, Russell recalculates
total market capitalization, which is the basis for
the Russell Indexes annual reconstitution in June.
In
conjunction with the reconstitution of the Russell Indexes,
KLD revises the KLD BMSI and LCSI to reflect the changes
in the Russell Indexes and the most current KLD social
and environmental ratings for companies.
Companies
involved in alcohol, tobacco, firearms, gambling, nuclear
power and military contracting are excluded from consideration
on the KLD BMSI and LCSI. All remaining companies are
then evaluated for employee diversity, product innovation
and community involvement, among other criteria. All Russell
3000 and Russell 1000 companies passing these screens
are included in the associated KLD Index.
About the KLD Family
of Indexes
KLD's
family of social,
environmental and sustainability indexes includes: the
Domini 400 SocialSM
Index (DS 400 Index), launched in 1990, the established
benchmark for measuring the impact of social screening
on financial performance; the KLD Catholic Values 400SM
Index, launched in 1998, modeled on KLD's DS 400 Index;
the KLD Broad Market SocialSM
Index (KLD BMSI), launched in 2001, the screened subset
of the Russell 3000®
Index; the KLD Large Cap SocialSM
Index (KLD LCSI), launched in 2001, the screened subset
of the Russell 1000®
Index; the KLD NASDAQ Social Index (KLD NS Index), launched
in 2002, modeled on the NASDAQ Composite Index; the KLD
Select SocialSM Index
(KLD SSI), launched in 2004, the first US index maximizing
sustainability factors; and the KLD Global Climate 100SM
Index (KLD GC 100), launched in 2005, the first global
index focused on solutions to climate change.
About KLD Research
& Analytics, Inc.
KLD Research & Analytics, Inc. (www.kld.com)
is an independent investment research and index company.
Its products and services enable institutional money managers
and investors to integrate social and environmental factors
into their investment strategies, while helping them gather
assets, manage risk and control costs. The company is
known for the 15-year-old Domini 400 Social Index, the
world's first index to benchmark the performance of equity
portfolios subject to multiple social screens. Today more
than $8 billion is invested in funds based on KLD Indexes.
For more information about KLD or its family of Indexes,
please see our website (www.kld.com)
or contact Karen Agredo by phone (617.426.5270) or e-mail
(kagredo@kld.com).
|
