Social Impact Investing

Fund
Walden Social
Balanced Fund
Walden Social Equity
Fund
Winslow Green
Growth Fund
Alcohol Tobacco Gambling
Defense/
Weapons
Animal
Testing
Products/
Services
Environment
Human
Rights
Labor
Relations
Employment/
Equality
Community
Investment
X X R X R P P P P P P V
X X R X R P P P R P X V
R R R R R P P NS NS NS NS V
xRussell 3000 NS NS NS NS NS NS NS NS NS NS NS X
Proxy
Voting
Separately Managed Accounts
According to the 2014 Report on US Sustainable, Responsible and Impact Investing
Trends, among separate account managers, 214 distinctive separate account vehicles
or strategies, with $433 billion in assets, incorporated ESG factors into investment
analysis. Where a separate account is subject to ERISA, there are legal limitations on
the extent to which investment decisions can be based on factors other than maximizing
plan participants' economic returns.
Shareholder Advocacy
Shareholder resolutions are filed by a wide variety of institutional investors, including
public pension funds, faith-based investors, socially responsible mutual funds, and labor
unions. In 2004, faith-based organizations filed 129 resolutions, while socially
responsible funds filed 56 resolutions.
Regulations governing shareholder resolutions vary from country to country. In the
United States, they are determined primarily by the Securities and Exchange
Commission, which regulates mutual funds and applies the 1940 Act and by the
Department of Labor, which regulates certain plans and applies ERISA.
These regulatory regimes require pension plans and mutual funds to disclose how they
voted on behalf of their investors. U.S. shareholders have organized various groups to
facilitate jointly filing resolutions. These include the Council of Institutional Investors, the
Interfaith Center on Corporate Responsibility, and the US SIF.
From 2012 to 2014, more than 200 US institutions and investment management firms
filed or co-filed proposals. These institutions and money managers collectively
controlled $1.72 trillion in assets at the end of 2013. The top categories of
environmental and social issues from 2012 to 2014 were political contributions and
climate change and environmental issues.
Community Investing
Community investing, a subset of socially responsible investing, allows for investment
directly into community-based organizations. Community investing institutions use
investor capital to finance or guarantee loans to individuals and organizations that have
historically been denied access to capital by traditional financial institutions. These
loans are used for housing, small business creation, and education or personal
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