More mutual funds are contributing a portion of their profits to charity, which could sway more investors to choose their funds, The Wall Street Journal reports. However, advisers tell investors they should check to see if these admirable funds are charging higher fees and take a hard look at their performance.
One of the most generous is American Century Investments, which gives 40% of its profits to the Stowers Institute for Medical Research, a biomedical research organization established by founder James E. Stowers, Jr., and his wife, Virginia, both of whom are cancer survivors.
American Century’s nine target-date funds, the LiveStrong funds, also support cancer reaerch in that they have pledged to donate at least $6 million to Lance Armstrong’s foundation over 10 years.
Fenimore Asset Management donates 10% of its pre-tax profit to local charities selected by its employees and executives, and Bridgeway Capital Management sends 50% of its after-tax profits to the Bridgeway Foundation, which supports such social causes as human rights, education and helping the poor.