Funds from AIG, Boston Trust, Fidelity, JP Morgan and Pax topped the most recent Responsible Ratings Index, which shows the top-rated and top-performing U.S. funds based on ESG credentials, performance, volatility and company sustainability agendas.
The RRI, an index by InvestmentNews’ ESG Clarity US in partnership with sister company Last Word Research, is a compendium of fund ratings from Morningstar, MSCI and Refinitiv/ Lipper. It includes ratings of 48 funds from a universe of more than 7,500. The Refinitiv/Lipper data is not present this month due to an ongoing review of the scores.
Below are the 20 funds that scored the highest among the evaluators through mid-October.
The RRI is rebalanced each month to reflect changes to the individual ratings, but also to encompass the growing number of data providers that are beginning to award ESG funds with a score.
“We are looking forward to seeing the Refinitiv/Lipper data back in our index shortly,” said Lottie McGurk, quantitative researcher at Last Word Research.
[More: Methodology behind new Responsible Ratings Index]
Only funds that receive a four- or five-star rating from Morningstar’s overall performance ranking will make it onto the list. These funds have consistently performed well during the past three years, she said.