One of the basic things I learned in the non traded REIT (real estate) market is: it's all about the Yield. Or at least it used to be before subprime. Now there's a question of credit and resale value. But, as a risk averse investor, I would rather take a stable 6% a year with virtually no volatility than a 10% return with moderate volatility. In my hedge fund, I spend all day watching volatility (or, at least, the model does), measuring vol, and scoring potential vol before investing. Most individuals don't have the tools, time, information, or understanding to measure vol at a constant basis, and that means it may be worth it to not take the risk. While green income doesn't yet exist (though, it's on it's way), there are responsible ways to invest in income vehicles - Pax World High Yield is one example
Inception: October 8, 1999
Asset Type: Mutual Fund - Bond
Smug Category: Bond
Included in Smug Asset Pool?: Yes
|3 year annualized||6.82%|
|5 year annualized||7.10%|
Min Investment: $250
Min Retirement Investment: $250
Minimum Additional: $50 automatic investment, $250 otherwise
$2,500 to $24,999.99: 0.00% of offering price
$25,000 to $99,999.99: 0.00% of offering price
$100,000 or more: 0.00% of offering price
Management Fees: 0.83% for 2007
12b-1 Fees: 0.25%
Other fees: 0.71%
Expense Waivers: -0.78%
Total Annual Fee: 1.01% for 2007
Pax, as a company, has several funds I like, including the Women's Equity Fund (formerly a separate entity, bought out last year by Pax) and the brand new-ish Global Green Fund. However, for income and stability, there aren't many funds like Pax High Yield with a commitment to socially responsible and sustainable investing. Interestingly, and I think calculatingly, Pax chooses to minimize it's emphasis on the socially responsible and sustainable message in their prospectus, but it's nonetheless a part of the company ethos. On the website are large sections devoted to community investing, responsible shareholder voting, and sustainable investing in general.
In terms of performance, PAXHX is currently yielding a hefty 6.8% and pays on a monthly basis. That's pretty attractive for the DIYer considering it's a no load fund (despite some high management fees). It's currently 25% or so globally allocated to defray some of the domestic risk, and is currently valued below it's year average as it (along with everything else) saw a dip last October. Pax as a company is definitely worth a look, and the High Yield Fund is a good place to start.
PAXHX is currently in my asset pool, and in the interests of disclosure, and I currently own shares personally. PLEASE READ THE PROSPECTUS BEFORE INVESTING. Though I may own and use this asset in my portfolios, it may not be the correct fund for your individual situation, so this post is by no means a recommendation that you purchase. Please read the prospectus in full before choosing to invest.