Alger Responsible Investing Fund has a number of positive attributes that a sustainability-focused investor may find appealing.
This strategy holds securities with low exposure to ESG risk relative to those of its peers in the Morningstar US Equity Large Cap Growth 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.
Alger Responsible Investing Fund holds itself out to be a sustainable or ESG-focused investment. In other words, ESG concerns are central to the investment process of this strategy. A fund with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes. One key area of strength for Alger Responsible Investing Fund is its low Morningstar Portfolio Carbon Risk Score of 3.35 and very low fossil fuel exposure 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.
Alger Responsible Investing Fund shows 15.61% involvement in carbon solutions. This percentage surpasses the 11.23% average involvement of its peers in the Large Growth category. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on.
The fund has a modest level of exposure (5.11%) to companies with high or severe controversies. Companies with high or severe controversies are involved in incidents such as corruption, employee abuses, environmental incidents, and corporate scandals that pose serious business risks to the company.