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Sustainable Mutual Funds Investing Ratings Mutual Funds: They are there in your individual or institutional portfolio, right? This should be of interest to most: The 20th Century concept of “mutual funds” investment debuted before the stock market crash of October 1929; in 1924 the Massachusetts Investors’ Trust in Boston was created with State Street Investors’ Trust as the custodian. That fund opened to public investment in 1928. That same year the Wellington Fund (offering both bonds and equity) opened for business. When the dramatic market crash occurred there were 19 open-ended funds for investors. The 1929 crash diminished individual investors’ appetite for equities for most of the following decade. And, most Americans had little money to invest during the Great Depression (one of four households were unemployed). But by 1940, as investors “recovered” and gained some confidence in the market, and the national economy improved with preparation for WW II, there were enough mutual funds for the Congress to pass the Investment Company Act of 1940 to regulate mutual funds and protect investors. The first index funds came along in 1971 (a Wells Fargo offering); The Vanguard Group’s legendary investor John Bogle would use the concept (he embraced while a college student) to build the giant mutual fund enterprise. By the end of 2016, Statista was charting 9,500-plus funds with US$16 trillion in AUM in operation. There are also Exchange Traded Funds (ETFs) now with at least $3 trillion in AUM as of October 2017 according to Global X. Of course, as investors embrace the concept of sustainable or ESG investing, both mutual fund and ETFs offerings have been coming to market to add to the long-available funds offered by Domini, Trillium, MSCI, Pax, Calvert, Zevin, and other SRI advisory firms (the newer funds du jour have such titles as Fossil Free, Green Future, Sustainable Investing, Green Bonds, Low Carbon, Socially Responsible, etc.). And, of course, sustainability-focused ratings/scores/rankings/best for mutual funds and ETFs quickly followed here in the 21st Century as “sustainable” funds expanded. The popular Morningstar platform offers information on “Socially Responsible Funds” – any fund investing according to non-economic guidelines (issues include environmental responsibility, human rights, religious views, etc.) Morningstar also offers Sustainability Ratings for “Sustainable Investing” funds and tools such as the Portfolio Carbon Risk Score™. Janet Brown, a contributor to Forbes’ “Intelligent Investing,” offers her perspectives on ratings and rankings in this issue’s Top Story. She begins with: between two funds with the same returns, many people invest in the one with companies with good ESG practices or commitment to data security and privacy. Do sustainable ratings of the funds make a difference? There are four factors she and the team at her company (Fund X Investment Group) and Morningstar recommend considering: (1) Cost of Ratings (free or not); (2) What do sustainability ratings measure?; (3) How to use these ratings to find suitable funds; (4) How do the ratings fit into your investing strategy? The narrative captures highlights of a recent webinar by Fund X and Morningstar and explains some of the latter’s approach to the new Sustainable Funds ratings for you. Top Stories What You Need To Know About Fund Sustainability Ratings Sustainability: Forward Momentum! For Your Attention: The Editors' Scans Editorial: UNL displays impressive success with sustainability Sustainability governance is integrated governance Sustainability pays Viewpoint: Sustainability required in actions, not just words Why My OBE Shows That the Greatest Sustainability Challenges Lie Ahead, Not Behind Us And about the Apparel and Fashion Industry: 20 Fashion Revolutionaries Making Sustainability A Fashion Must-Have Luxury How Sustainable Is Your Wardrobe? And Food & Agriculture in Focus: Studies assess the sustainability of different food production methods About Sustainability and Cities: If you want sustainable cities, you need to first consider resilience Our Focus This Week on A Range of ESG Topics & Issues – More Things For You to Think About 8 Ways Your Business Can Help Save the Environment New study examines impacts of fracking on water supplies worldwide 10 Incredible Renewable Energy Stats From Around the Globe
Headlines for You From the Corporate Sector - Both Positive & Negative "There is no innovation without sustainability" says Nike's chief operating officer Six Senses Releases Impressive Sustainability Results Tyson Recalls Over 3,000 Lbs. of Frozen Chicken Products Kia recalls 500,000 vehicles in the US due to airbag glitch Activist investor Paul Singer just chose Sempra Energy as his next turnaround project China to Investigate Deplorable Conditions at Amazon Echo Factory Daimler to Recall 774,000 Vehicles Over Alleged Emissions Cheating Volkswagen fined $1.18B for diesel emissions cheating General Motors Just Named Its First Woman CFO Google releases first diversity report since the infamous anti-diversity memo McDonald's to scrap plastic straws in UK and Ireland Kentucky sues Walgreens, cites 'alarming' rate of dispensing opioids News & Opinion: Asset Managers, Sovereign Wealth Funds, Pension Funds The World’s Biggest Pension Fund Struggles With Sustainability Nigeria sovereign fund to boost domestic focus after profit drop Calpers Weighs Following Warren Buffett’s Path The next generation of Silicon Valley’s sustainability investing needs strategic corporates Trending: Goldman Sachs, CMS Energy, Danish Pension Funds Take on Sustainability-Linked Investments SEC announces cryptocurrency ether is not a security
| Louis Coppola from G&A Institute Goes In Depth on How to Improve ESG Performance
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G&A Institute Sustainability Update™ 7 Reasons Why America is Rethinking Capitalism Now U.S. States and Cities — “Still In” to the Paris Agreement — and Great Progress is Being Made _________________________________________
G&A's To The Point! is a businesss intelligence web-platform resource. This management briefing service offers timely insights and perspectives on Corporate Sustainability, Responsibility & Citizenship.Click here to request a trial subscription. Below are links to a sampling of three recent briefs: ABOUT THOSE CORPORATE EMPLOYEE PENSION PLANS –The Focus is Increasing on the Shortfalls…and Remedies _________________________________________ FLASH REPORT: 85% of S&P 500 Index® Companies Publish Sustainability Reports in 2017
Using The GRI Sustainability Reporting Framework Improves The Quality of ESG Disclosures - Joint Research From G&A Institute and Baruch College Shows
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________________________________________ GRI'S USA, UK & IRELAND
G&A Institute is the Data Partner for the Global Reporting Initiative's (GRI) in the USA, UK and Republic of Ireland. We identify, receive, collect, analyze, database, and communicate about every report issued in any of the 3 countries. Over the past 6+ years, G&A analyzed 6,000-plus sustainability reports in this pro bono role and databased 100+ important data points for each report. Find out more @ G&A's What's A Data Partner _________________________________________
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The Sustainability Highlights eNewsletter is prepared by Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Governance & Accountability Instiute is the "Sustainability Headquarters™" for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities.For G&A's full range of services, click on each of the links below: For more information, contact Governance & Accountability Institute, Inc. | |||||||||||||||||||||
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