Delaware Ivy Core Equity Fund has several promising attributes that may appeal to sustainability-focused investors.
Delaware Ivy Core Equity Fund's holdings are exposed to average levels of ESG risk relative to those of its peers in the US Equity Large Cap Growth category, thus earning it an average Morningstar Sustainability Rating of 3 globes. Competing funds in the category with ratings of 4 or 5 globes have less ESG risk in their holdings. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, such as climate change and inequalities, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.
One key area of strength for Delaware Ivy Core Equity Fund is its low Morningstar Portfolio Carbon Risk Score of 6.93 and low fossil fuel exposure of 6.00% over the past 12 months, which earns it the Morningstar Low Carbon Designation. The fund is therefore well positioned to transition to a low-carbon economy.
One potential issue for a sustainability-focused investor is that Delaware Ivy Core Equity Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate are more likely to align with the expectations of an investor who cares about sustainability issues.
The fund exhibits moderate exposure (8.97%) 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.