Summit Mutual Funds of Cincinnati, Ohio, will start a "socially-responsible" index fund on June 26 that places a greater weight than its index on companies that engage in ethical business practices. But, the fund does not exclude any companies, according to an SEC filing.

The Total Social Impact Fund will be the first socially-responsible index fund that does not exclude certain securities from its holdings, said Steve Dillenburg, the fund's portfolio manager. The no-load fund will invest in all stocks listed on the S&P 500. But companies that adhere to ethical business principles outlined in the Caux Principles for Business, a standard developed by global business leaders in 1994, will receive greater weightings than those they receive in the S&P 500.

Companies will receive greater wieghtings if they distinguish themselves for their fairness of advertising practices, quality of product, employee relations, workplace safety, operations transparency, community relations, environmental practices and supplier and vendor relations and practices.

Total annual operating expenses for the fund will be 75 basis points.

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