By the Numbers: New ESG ratings index
George Moriarty, chief content officer at InvestmentNews, talks about ESG Clarity’s new Responsible Ratings Index, which shows a variety of ratings on sustainable funds and calculates a combined score for each fund.
Transcript:
I’m George Moriarty and this is By the Numbers
Today, we’re talking ESG, and the number of the day is 420
That’s because 420 funds are included in the new Responsible Ratings Index that has just been released by our very own ESG Clarity US.
The RRI index offers financial advisers and investors easy access to a variety of sustainability scores for top-performing US funds. Research firms increasingly are rating responsibly invested funds based on ESG and other credentials, but the Responsible Ratings Index is the first tool that presents multiple ratings for funds and calculates a combined score.
In the first edition, released in August in partnership with sister company Last Word Research, the ratings from Morningstar, MSCI and Refinitiv Lipper are tabulated for 420 funds, all of which scored a five-star rating from Morningstar’s overall performance ranking before they were even considered for the list.
You can see the Top 10 funds and their scores, on the screen. Funds from Green Century, Morgan Stanley and JP Morgan took the top three spots.
The Responsible Ratings Index will be rebalanced each month to reflect changes to the individual ratings, but also to encompass the growing number of data providers that are beginning to award ESG funds with a score.
Last Word Quantitative researcher for Last Word Research Lottie McGurk called the tool a “one-stop shop for investors to find the top ESG funds.”
You can find the full RRI list at ESGclarityus.com/RRI.
So check it out, and find your ESG numbers!
With that, I’m George Moriarty, and from my home office to yours, stay safe and we’ll see you next week.
