Security - Check Permissions

MFDF - Mutual Fund Directors Forum - Morningstar to add ESG Fund Score

Member Login

Request an account

Sample Banner 2

Morningstar to add ESG Fund Score

Morningstar recently announced that it will add a new environmental, social, and governance rating to its mutual fund scorecard. The company cited a February study showing that 71 percent of individual investors have some interest in sustainable investing and suggested that the scores are a “natural extension” of its current work. It plans a fourth quarter launch for the ratings.

Morningstar will calculate the number using an ESG research service provider’s ratings of a fund’s underlying holdings on an asset-weighted basis. According to Investment News, Morningstar plans to simply “roll up the scores” to a zero-to-100 score and will not rate or characterize funds based on the measurement.