Domini Social Investments of New York will offer its Social Equity Fund in Ford Motor Company's 401(k) plan, the ninth largest defined contribution plan in the country, Domini has announced.
Ford's defined contribution plan has more than $20 billion in assets held by 86,000 employees, the company said. The Domini Social Equity Fund is the first socially-responsible mutual fund to be offered in the plan, according to the company.
Of the $2 billion in assets under Domini management, $1.4 billion is invested in the Domini Social Equity Fund. The fund has become a popular option in retirement programs, said David Weider, CEO and managing principal of the firm. Thirty percent of the fund's asset growth this year has been in corporate 401(k) plans, he said.
The fund is based on the Domini 400 Social Index, an index that is made up of 400 companies that are screened for social and environmental issues. The companies included in the index share strong records in community involvement, the environment, diversity and employee relations. Companies that generate their revenue through weapons contracting, tobacco, alcohol, gambling and nuclear power are generally not included in the index.