How Sustainable are European Equity Funds?

Large numbers of asset managers are incorporating environmental, social and governance considerations into their investment processes

Muna Abu-Habsa 19 January, 2017 | 10:00AM

It is commonly believed that sustainable investing is only about those who opt for investments that reflect their values. But times are changing; large numbers of asset managers are incorporating environmental, social and governance considerations into their investment processes. And this is not statement on values, it is because they find ESG evaluations can lead to more sustainable financial returns.

The sustainability ratings for Henderson funds have been above average

In a similar way, we believe investors should also be better informed on the ESG disciplines of the funds they are considering to buy, or indeed already own. Just over six months ago we launched the industry’s first sustainability rating for funds and ETFs, the Morningstar Sustainability Rating. The key purpose of the rating is to give investors a fresh perspective on how well the underlying companies in a fund are doing on sustainability relative to their peers.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Bayer AG50.67 EUR0.00
BGF European Focus A220.13 EUR-2.87
British American Tobacco PLC2,588.00 GBP0.00
Fidelity European Growth A-Dis-EUR11.66 EUR-4.74
Imperial Brands PLC1,322.60 GBP0.00
Intesa Sanpaolo1.57 EUR0.00
Invesco Pan European Eq Inc C EUR Acc12.22 EUR-0.98
Lloyds Banking Group PLC34.40 GBP0.00
Novartis AG76.00 CHF0.00
Royal Dutch Shell PLC B1,230.60 GBP0.00
Sanofi SA77.00 EUR0.00

About Author

Muna Abu-Habsa  is a senior investment research analyst at Morningstar

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