Some companies that on the face of it appear to be social investments are not, Keefe said, such as companies that engage in industrial agriculture. Keefe uses a team approach to researching bond purchases. She handles the financial research and then picks possible candidates. Another group at the firm handles the social research. When that is completed, the potential bond is then reviewed on a pass or fail criteria for purchase.
People come to the table for different reasons.
Some are social activist-types who wouldn't have it any other way. The fund has between 40 and 60 issues, Keefe said, which allows her more flexibility in managing the portfolio. While the screening process is tough, Keefe said the fund has 75 percent of the industry sectors covered. One person who invests this way, and a Keefe client, is Dan McKenna, president of Principle Profits Asset Management Inc., an Amherst, Mass-based investment adviser with 230 accounts that require social screening. The fund held up pretty well last year in an ugly market for high-yield.