Neuberger Berman International Sel Fd has several promising attributes that may appeal to sustainability-focused investors.
This strategy holds securities with low exposure to ESG risk relative to those of its peers in the Morningstar Global Equity Large Cap category, earning it the highest Morningstar Sustainability Rating of 5 globes. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change and inequalities, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.
One key area of strength for Neuberger Berman International Sel Fd is its low Morningstar Portfolio Carbon Risk Score of 6.21 and low fossil fuel exposure of 1.66% over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy.
One potential issue for a sustainability-focused investor is that Neuberger Berman International Sel Fd doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.
The fund exhibits moderate exposure (2.76%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.