Morningstar Introduces New Ratings Systems For Sustainable Investments
Dailycsr.com – 14 March 2016 – The “Morningstar Sustainability Rating” is a new “sustainable investing initiative” made by Morningstar for fund purposes. The said rating will take into account “mutual and ETF funds” made by the investors in companies that incorporate “ESG factors in their strategy” and evaluate the same.
Morningstar Direct will rate more than “20,000 global funds”, whereby creating a “research platform” wherein “wealth management professionals” along with “asset managers” can come together. Moreover, the same funds will also be rated “on Morningstar Office” which is “the practice management system” that caters to “independent financial advisors”. The ESG metrics, besides incorporating the ratings will also take the “Environmental, Social, and Governance scores” separately into consideration.
The new project of ratings initiative and “metrics to investors” will be led by the Chief Executive Officer at Morningstar Benelux, Steven Smit who will be held responsible for the same. In Smit’s words:
“Given the widespread and growing interest in sustainable investing around the world, investors need better tools to help them determine whether the funds they own or are considering adding to their portfolios reflect best sustainability practices. Our Sustainability Rating and related metrics will provide investors with an ESG lens they can use to evaluate funds and, eventually, other managed products. Creating more insight into sustainability investing is a passion of mine and of many others at Morningstar. This initiative will help us better serve investors who place particular importance on incorporating ESG factors into their investment decisions.”
The early rating analysis of Morningstar shows that the authorities with “explicit sustainable or responsible” agenda are usually keeping up to their commitments. As a matter of fact almost two in every three “such funds” were rated the “highest” resulting in “more than double the percentage of funds with Sustainability Ratings overall”.
Morningstar has further plans of expanding the “number and types of investments” that currently feature in the “Sustainability Ratings” besides adding “additional sustainable investing analytics and research”.
References:
http://www.ethicalperformance.com/
Morningstar Direct will rate more than “20,000 global funds”, whereby creating a “research platform” wherein “wealth management professionals” along with “asset managers” can come together. Moreover, the same funds will also be rated “on Morningstar Office” which is “the practice management system” that caters to “independent financial advisors”. The ESG metrics, besides incorporating the ratings will also take the “Environmental, Social, and Governance scores” separately into consideration.
The new project of ratings initiative and “metrics to investors” will be led by the Chief Executive Officer at Morningstar Benelux, Steven Smit who will be held responsible for the same. In Smit’s words:
“Given the widespread and growing interest in sustainable investing around the world, investors need better tools to help them determine whether the funds they own or are considering adding to their portfolios reflect best sustainability practices. Our Sustainability Rating and related metrics will provide investors with an ESG lens they can use to evaluate funds and, eventually, other managed products. Creating more insight into sustainability investing is a passion of mine and of many others at Morningstar. This initiative will help us better serve investors who place particular importance on incorporating ESG factors into their investment decisions.”
The early rating analysis of Morningstar shows that the authorities with “explicit sustainable or responsible” agenda are usually keeping up to their commitments. As a matter of fact almost two in every three “such funds” were rated the “highest” resulting in “more than double the percentage of funds with Sustainability Ratings overall”.
Morningstar has further plans of expanding the “number and types of investments” that currently feature in the “Sustainability Ratings” besides adding “additional sustainable investing analytics and research”.
References:
http://www.ethicalperformance.com/
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