New Alternatives Fund investment policies are materially different
from other funds. However like many funds, the Fund seeks long-term
capital gains by investing in common stocks and makes investments
in a wide range of industries and in companies of all sizes.
Our basic screens are the following:
|Proactive Investment in:
|No Investment in:|
There is no commitment to a specific formula in selecting investments,
such as favoring growth or value or any technical system.
The Fund's Advisor selects securities for purchase or sale by subjective
concern to the areas of interest and concentration. The Advisor assesses
the perceived risk of the investment at a particular price.
Attention is given to the perceived prospects for the company selected
and its industry, with concern for economic, political and social
conditions at the time.
The Fund seeks to invest according to the following principles:
of this Fund’s investments will be in companies that
provide a contribution to a clean and sustainable environment.
We also invest in companies that produce or market environmental
is a special interest in alternative energy. Alternative energy
means production and conservation of energy by means which
reduce pollution and harm to the environment; particularly
when compared to conventional coal, oil or atomic energy.
with non-discriminatory practices at all levels of their work
force are sought.
We invest in solar energy, biomass, energy conservation, fuel
cells, modern wind turbines and recycling. Hydroelectric, wind and
geothermal power are old and efficient alternative energy sources. We
invest in them. All of these sources make for a cleaner environment
and movement to energy independence.
The Fund invests in companies that prevent or reduce air and water
pollution as well as those which use fewer chemical pesticides. We
seek to provide alternatives to clear cutting forests and to promote
The Fund's goal is to invest 25% or more of assets in companies
involved in alternative energy. That percentage may not always be
achieved. There are presently a limited number of likely cost competitive
companies from which to choose.
The greater the use of alternative energy, our advisors believe,
the more competitive it will be. Hydrocarbon fuels are still required.
Of these fuels, we prefer natural gas, which is the cleanest hydrocarbon,
and we invest in it. Natural gas is the most used fuel for fuel cells
at this time.
The Fund maintains modest amounts in socially concerned (federally insured) banks that are committed to serving community needs.
We Expect to Do Well
Our advisors believe that come what may to the economy, the areas
in which we invest such as clean water and clean air will continue
to present opportunities. The Fund officers believe that the need
for cost-effective clean energy will surely stay with us and grow.
Alternative Energy is not like oil. Oil is a finite resource. Oil
reserves will diminish. Our advisors believe that alternative energy
can only grow, become less expensive, and more widely used as the
The path is not continuous. There will be many bumps in the road.
We solicit and use information and opinions of our shareholders,
many of whom are knowledgeable about the technologies in which
we invest. We equally invite the opinions of shareholders about
the propriety of the companies in which we invest.
The Fund Managers:
The managers subscribe to a number of general and financial publications
as well as ones relating to the Fund's area of interest. The managers
review annual reports (Form 10K) and quarterly reports (Form 10Q)
of companies as filed with the SEC, as well as various analyst reports,
studies of sales and purchases of shares by company officers. The
managers review news daily about every company in which the Fund