Environmental, social and governance (ESG) are increasingly seen as desirable criteria by investors to measure the sustainability and ethical impact of a company or business.
Growing concern about climate change and the societal value of companies are driving investors, particularly millennials, towards organisations that are targetting social or environmental goals. From 2016 to 2018, US-domiciled assets under management (AUM) using sustainable strategies grew by 38% to $12.0 trillion.
Companies are also aligning their business processes with ESG issues – primarily driven by a focus on reputational risk and the expectations of customers, employees and other key stakeholders. In addition, a poll of +900 board members and business leaders by the Audit Committee Institute revealed that 47% of respondents believe ESG-focused companies outperform competitors.
As the drivers of interest in ESG investment vehicles moves from that of risk to reward, we decided to analyse the top-performing funds that pursue sustainable and responsible investing strategies. It’s particularly interesting to note that on a CAGR basis, performance measures of the top ESG funds are comparable to the other top performing investment vehicles we published last week in our data partnership announcement with Morningstar.
Best performing ESG funds of 2019
|Rank||Company||Fund Name||Last Month||YTD||3 Years||CAGR||AUM ($)|
(Criteria used: AUM > $500M, Track Record > 3 Yrs, YTD June 2019)
Access the in-depth analysis to view additional measures for this fund group, including relative measures, historical absolute returns, risk and reward analysis and more. You can analyse each of the funds in this group and customise your own fund comparisons on Edgefolio.com. To find out more, contact us for a demo. Sign up to our newsletter for further updates like this from our blog.
Data provided by Morningstar. Care has been taken to ensure that the information is correct, but Edgefolio neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.