GAY-FRIENDLY FUND SHINES
If the Meyers Pride Value Fund is any indication, mutual funds are coming out of the closet. The…
If the Meyers Pride Value Fund is any indication, mutual funds are coming out of the closet.
The fund, the only one that screens for gay-friendly companies, has beaten its mid-cap value peers over one and three years, returning an average annual 31.09% and 18.72%, respectively, vs. 10.35% and 11.55%, through Sept. 28, according to Morningstar Inc.
Manager Shelly Meyers, 40, who in late 1995 left Boston Co. Inc., to start her own firm in Beverly Hills, Calif., says she wanted to put a new twist on socially aware investing. Her firm also runs $15 million in separate accounts.
“Not only have people come out of the closet, but so has marketing in companies” seeking to woo gay and lesbian consumers, says Ms. Meyers, who is gay. “I just felt like the time was right.”
The fund is still small, with $5.6 million, but Ms. Meyers says sales have picked up now that the portfolio has three years under its belt.
To be included in her database, companies must have written policies stating that they don’t discriminate against gays and lesbians when it comes to hiring, promotion and other employment practices. It also helps if they have gay-friendly internal policies like domestic-partner benefits.
“There are still 39 states that don’t have laws to protect gay and lesbian employees. So it’s important that companies adopt these policies to provide some protection,” she says.
About 450 companies have made the “approved list,” from which Ms. Meyers picks stocks. As of August, the portfolio’s top 10 holdings were Oracle Corp., General Instrument Corp., Rite Aid Corp., Whole Foods Market, Honeywell, McKesson Corp., Petco Animal Supplies, Apple Computer Inc., AT&T Corp. and Cendant Corp.
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