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Sustainability Matters

Sustainability-Focused Funds Garner Positive Flows in 2016

Parnassus Funds gained assets last year. Plus, new options make it easier to build SRI portfolios.

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In the face of continued significant U.S. open-end fund industry outflows, sustainability-focused open-end funds experienced positive net flows in 2016, based on Morningstar estimates. While investors pulled more than $127 billion out of open-end funds last year overall, they put nearly $3 billion into funds with some type of sustainable, responsible, or impact mandate.

The list of SRI[1] funds continues to grow, with 17 fund launches in 2016. Several big conventional fund companies, including American Century, JPMorgan, Morgan Stanley, and PIMCO, added environmental, social, and governance, or ESG, criteria to the investment processes of some of their existing funds.

Jon Hale does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.