Funds from WCM, Harding Loevner, Clearbridge, JPMorgan Chase and Parnassus 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. This update includes ratings of 1,529 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.
“The RRI is the perfect tool for any investor looking to focus more on ESG. It allows them to cut through the noise, and see which funds have received the highest scores, and across the most ratings agencies,” said Lottie McGurk, quantitative researcher at Last Word Research. “This is the perfect starting point for your own further research, and highlights that it isn’t just the funds you would expect that are ESG compliant.”
Below are the 20 funds that scored the highest among the evaluators through mid-January.
Name | RRI | Morningstar Sustainability Rating | MSCI | 3D Investing | Morningstar Star Rating (Quant) | Morningstar Analyst Rating (Qual) | Global Category | Global Broad Category Group | Fund Size $m |
|---|---|---|---|---|---|---|---|---|---|
WCM Focused International Growth Instl | 5 | 5 | 5 | 5 | Silver | Global Equity Large Cap | Equity | 22374 | |
Harding Loevner Instl Emerg Mkts I | 5 | 5 | 5 | 4 | Silver | Global Emerging Markets Equity | Equity | 6853 | |
ClearBridge International Growth C | 5 | 5 | 5 | 5 | Global Equity Large Cap | Equity | 5806 | ||
JPMorgan International Equity I | 5 | 5 | 5 | 4 | Global Equity Large Cap | Equity | 3547 | ||
JPMorgan International Focus R6 | 5 | 5 | 5 | 5 | Global Equity Large Cap | Equity | 3380 | ||
Parnassus Endeavor Investor | 5 | 5 | 5 | 4 | Neutral | US Equity Large Cap Growth | Equity | 3357 | |
JNL/WCM Focused International Equity A | 5 | 5 | 5 | 5 | Global Equity Large Cap | Equity | 2226 | ||
American Century NT International Gr G | 5 | 5 | 5 | 4 | Global Equity Large Cap | Equity | 1399 | ||
AllianzGI Water Class P | 5 | 5 | 5 | 5 | Neutral | Natural Resources Sector Equity | Equity | 853 | |
Trillium ESG Global Equity Fund Retail | 5 | 5 | 5 | 4 | Global Equity Large Cap | Equity | 779 | ||
Buffalo International | 5 | 5 | 5 | 4 | Global Equity Large Cap | Equity | 550 | ||
Boston Common ESG Impact Intl | 5 | 5 | 5 | 5 | Global Equity Large Cap | Equity | 406 | ||
Fiera Capital International Equity Z | 5 | 5 | 5 | 4 | Global Equity Large Cap | Equity | 197 | ||
Green Century MSCI Intl Indx Instl | 5 | 5 | 5 | 5 | Global Equity Large Cap | Equity | 124 | ||
Jensen Quality Value I | 5 | 5 | 5 | 5 | US Equity Mid Cap | Equity | 89 | ||
JPMorgan US Sustainable Leaders I | 5 | 5 | 5 | 4 | US Equity Large Cap Blend | Equity | 78 | ||
AIG ESG Dividend W | 5 | 5 | 5 | 4 | US Equity Large Cap Value | Equity | 44 | ||
Martin Currie International Uncons Eq IS | 5 | 5 | 5 | 4 | Global Equity Large Cap | Equity | 25 | ||
Saturna Sustainable Equity | 5 | 5 | 5 | 4 | Global Equity Large Cap | Equity | 20 | ||
MFS International Intrinsic Value A | 4.5 | 4 | 5 | 5 | Bronze | Global Equity Large Cap | Equity | 31206 |
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.
[More: Methodology behind 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.
