Morgan Stanley Dean Witter of New York will issue a new social index fund called the Morgan Stanley KLD Index Fund, according to a preliminary prospectus filed April 17 with the Securities and Exchange Commission.
The fund will be based on the KLD Large Cap Social Index, an index created by Kinder, Lydenberg, Domini & Company of Boston that is comprised of U.S. companies listed on the Russell 1000 index that meet certain social and environmental criteria. The new fund will invest at least 80 percent of its assets in the KLD Index and the remaining 20 percent in stock index futures and other index funds that contain securities included in the KLD Index, according to the prospectus. The fund will offer class A, B, C and D shares. A shares will charge a 5.25 percent load and a 25 basis point 12b-1 fee and B and C shares will charge a five percent contingent deferred sales charge and a 100 basis point 12b-1 fee, according to the prospectus. The contingent deferred sales charge is applied to all redemptions made within six years of the original investment, according to the prospectus.