What is the Morningstar Sustainability Rating™ for funds?
It’s a new way for investors to evaluate how well the companies in a fund’s portfolio are managing the environmental, social, and governance—or ESG—investing factors relevant to their industries. It makes it possible to find sustainable funds even if they aren’t marketing themselves specifically as products that support a socially responsible investing approach.
Explore socially responsible investing.
You can use our Sustainability Ratings to choose funds, whether you want to make investing decisions based on your personal values or as part of your strategy. While the Morningstar Rating™ tells you how a fund has performed in the past, our Sustainability Ratings help you understand how sustainable the companies are in a fund’s portfolio.
Lead the conversation.
You can reach new clients and better serve existing ones by revealing factors often overlooked in traditional analysis. Our ratings open up a world of new investment possibilities to your clients, beyond the limited pool of socially responsible mutual funds, or SRI funds.
Address changing investor preferences.
You can develop investments using an added layer of research and discover opportunities to market to emerging demographics of investors who are interested in socially responsible investing.
Instead of saying ‘I don’t know how to handle this’ or ‘it’s not worth looking at,’ advisors can use sustainability data to serve their clients better.
Bill Holiday, CFP®
AIO Financial Planning