The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:M* Adds Another Score For Mutual Funds Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, August 18, 2015

M* Adds Another Score For Mutual Funds

News summary by MFWire's editors

Fundsters, beware; the folks at Morningstar are about to start scoring your wares in another way.

Last week the Chicago-based mutual fund ratings specialists unveiled plans to launch ESG (environmental, social, and governance) scores for mutual funds worldwide. The Financial Times and InvestmentNews both picked up on M*'s plans.

By teaming up with Dutch firm Sustainalytics, Morningstar will add ESG scores onto each mutual fund. Sustainalytics rates companies from zero to 100 based on ESG impact, and the Morningstar folks will weight the underlying components' scores to arrive at overall ESG ratings for each fund. This will be separate from, and in addition to, its quantitative, risk-adjusted-performance-based star ratings, and its forward-looking, qualitative analyst ratings.

"We want to bring even greater transparency and accountability to the investment industry with ESG research, data and tools, while helping investors to put their money to works in ways that are meaningful to them," states Jon Hale, director of manager research in North America for Morningstar.

A subset of mutual funds actively use some kind of ESG screens, but these scores will be applied to non-ESG funds, too. For ESG-focused mutual fund shops, the scores may be a double-edged sword. On the one hand, they'll gain numbers to point to show how their wares compare favorably to specific non-ESG-focused funds. On the other, it may create "new" competing ESG-like funds if any high-performing funds without specific ESG screens turn out to have strong ESG scores anyway. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use