Our Investment Strategy

The investment policies of the New Alternatives Fund differ fundamentally from other funds. Nevertheless, it is similar to many funds in aiming to achieve long-term capital gains through investments in ordinary shares and in a wide variety of different industries and enterprises of varying sizes.
 
Our basic screens are as follows:

                      Proactive investments in
                      Human rights
                      Labor relations
                      Products/services
                      Clean energies
                      Community investments
                      Employment/discrimination
                      Environment

Investment formula

We do not commit to any specific formula, such as favoring growth or value or any technical system, when it comes to selecting our investments. The Fund's advisor decides which shares are to be bought or sold with subjective consideration of the areas of interest and focuses. The advisor evaluates the perceived risk inherent in the investment at a specific price. We consider the perceived development outlook of the selected enterprise and the industrial sector to which it belongs, giving due attention to the economic, social and political factors at play. The underlying investment principles of the Fund are as follows: 

A: The majority of the Fund's investments are focused on enterprises which contribute to creating a clean, sustainable environment. We also target producers and marketers of organic food products.

B: Alternative energies represent a field of particular interest. Alternative energies involve generating and saving energy in ways that cut pollution and environmental damage, especially in comparison to traditional fuels such as nuclear, oil or coal.

C: We aim to invest in enterprises that do not engage in any forms of discrimination in their employment practices.

Solar energy, biomass, energy conservation, fuel cells, modern wind turbines and recycling are among the focuses of our investments. Older but still efficient sources of alternative energy in which we also invest include hydroelectric power, geothermal power and wind turbines. The above-mentioned sources all contribute towards a cleaner environment and promote energy independence. 

We also invest in enterprises dedicated to combating air and water pollution and the use of chemical pesticides, as well as forestry companies providing alternatives to clear-cutting and companies that promote recycling.

Our goal is to invest a minimum of 25% of our assets in enterprises in which have an involvement in alternative energies, but we acknowledge that such a high percentage is not always easily achievable, since the number of eligible cost-competitive companies to choose from is currently limited.

We believe that a more intensive use of alternative energies will result in greater competitiveness. However, there remains a need for hydrocarbon fuels, among which we prefer to invest in the cleanest of all, natural gas, which is currently the hydrocarbon of choice for fuel-cell use.

US Treasury bills is the form in which we usually store our money pending its investment in shares. However, smaller amounts of money are also held in federally insured banks that show social responsibility and a commitment to community needs.