Index profile

MSCI KLD 400 Social Index

Index family
MSCI KLD 400 Social Index

Principles

The MSCI KLD 400 Social Index is the oldest corresponding US Index. The Index reflects the performance of 400 US companies which cope with specific social and environmental criteria. Based on free-float market CAP the index contains holdings at approximately 250 companies from the S&P 500, 100 non-S&P companies chosen for sector diversification and market capitalization, and 50 additional companies with exemplary social records. In selecting companies the index seeks the following criterias:


- the social performance;
- the market capitalization;
- the sector of the companies. New listed companies in the S&P 500 are preferred.

However not every company of the S&P 500 universe is included in the MSCI KLD 400 Social Index. Even though a company meets the social criteria it is not included when the sector of the company is overrepresented in the index yet.

Excluding criteria

Should the provider come to the conclusion that the company's activities, products or services are harmful to the society, it is generally not accepted. Excluded are companies from the following industries.

- Alcohol;
- Gambling;
- Nuclear Power;
- Military;
- Firearms;
- Tobacco.

Positive criteria

The companies have to meet the specific criteria in the following areas:

- Community;
- Employee Relations;
- Environment;
- Corporate Governance;
- Product Safety and Quality;
- Human Rights.

Research done by

Kinder, Lyndenberg, Domini & Co (KLD)

 
Funds based on the index Green Century Capital Management's Green Century Equity Fund; Domini Social Investment's Domini Social Equity Fun
Finance-/tech. - support by n.s.
Benchmark S&P 500
Company profiles n.s.
 

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