Morningstar Research Says Two Thirds Of Sustainable Funds Outperformwritten by Bella Palmer
If you are investing online with the requirement that any funds you put your hard earned money into meet sustainability criteria, the good news is new research by
The Morningstar research found that two thirds of funds marketed as ESG outperformed their category average. 34% made it into the top 25% and 63% the top 50%. The research looked at fund returns over the year that ended June 30
Hortense Bioy, Morningstar’s director of passive strategies and sustainability research
Morningstar additionally commented:
“These numbers are consistent with evidence from academic research that suggests no systematic performance penalty associated with sustainable investing and possible avenues for
The fund data company did add the caveat that because the
Despite the sector’s strong performance, only 1.5% of total assets under management are still invested in ESG-marketed funds. However, the sector is growing quickly. Over 2018, a total of 305 ESG funds
The fund managers with the strongest presence in the ESG sector are mainly from northern Europe. Among the biggest ESG asset managers are Norway’s Storebrand, Handelsbanken and Swedbank from Sweden and NN Investment Partners of the Netherlands. Northern European asset managers have been more actively developing and promoting ESG funds for several years longer than those from many other parts of Europe, including the UK.
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