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 Instl5 5 5 5 Silver
Global Equity Large Cap
Equity
22374
Harding Loevner Instl Emerg Mkts I5 5 5 4 Silver
Global Emerging Markets Equity
Equity
6853
ClearBridge International Growth C5 5 5 5
Global Equity Large Cap
Equity
5806
JPMorgan International Equity I5 5 5 4
Global Equity Large Cap
Equity
3547
JPMorgan International Focus R65 5 5 5
Global Equity Large Cap
Equity
3380
Parnassus Endeavor Investor5 5 5 4 Neutral
US Equity Large Cap Growth
Equity
3357
JNL/WCM Focused International Equity A5 5 5 5
Global Equity Large Cap
Equity
2226
American Century NT International Gr G5 5 5 4
Global Equity Large Cap
Equity
1399
AllianzGI Water Class P5 5 5 5 Neutral
Natural Resources Sector Equity
Equity
853
Trillium ESG Global Equity Fund Retail5 5 5 4
Global Equity Large Cap
Equity
779
Buffalo International5 5 5 4
Global Equity Large Cap
Equity
550
Boston Common ESG Impact Intl5 5 5 5
Global Equity Large Cap
Equity
406
Fiera Capital International Equity Z5 5 5 4
Global Equity Large Cap
Equity
197
Green Century MSCI Intl Indx Instl5 5 5 5
Global Equity Large Cap
Equity
124
Jensen Quality Value I5 5 5 5
US Equity Mid Cap
Equity
89
JPMorgan US Sustainable Leaders I5 5 5 4
US Equity Large Cap Blend
Equity
78
AIG ESG Dividend W5 5 5 4
US Equity Large Cap Value
Equity
44
Martin Currie International Uncons Eq IS5 5 5 4
Global Equity Large Cap
Equity
25
Saturna Sustainable Equity5 5 5 4
Global Equity Large Cap
Equity
20
MFS International Intrinsic Value A4.5 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.
