New study reveals novel methodology for assessing the sustainability of investment funds
The simple, transparent and effective approach allows a company or an entire fund portfolio to be objectively assessed for sustainability. Investors can easily check funds against environmental, social and governance (ESG) criteria.
Zurich / Frankfurt - September 24, 2012 (Investorideas.com newswire) A recent research project, jointly conducted by Frankfurt-based AfU Investor Research GmbH and Swiss firm RepRisk AG, has found that conventional funds, with no claim to being sustainable, perform similarly to sustainable funds that incorporate ESG criteria. The study looked at a total of 166 European funds and identified 13 that explicitly incorporated sustainability factors.
The methodology used is based on a straight forward, objective, and transparent approach, in which every company in a particular fund is assigned its own sustainability value using RepRisk’s Reputational Risk Index (RRI). The RRI is a calculation based on controversial reports collected from media and other sources relating to the environmental, social and governance performance of the company in question. This score is then given a weighted average value and aggregated according to the share of the company in the particular portfolio.
The study shows that in terms of sustainability, the average performance of traditional funds is no worse than that of specialized sustainability funds. Equally relevant is the fact that no significant difference can be seen in the financial performance of both types of fund. This allows for interesting conclusions for investors considering the inclusion of sustainability in their investment process. The exact results and further data can be obtained from the complete study, which is available free of charge from AfU Investor Research. Please email email@example.com to request the report.
RepRisk is the leading provider of business intelligence on environmental, social and governance (ESG) risks. As such, RepRisk systematically collects and analyzes negative sentiment related to companies and projects worldwide. It does so on a daily basis and in 13 languages from thousands of public sources including international and local media, government sites, non-governmental organizations (NGOs), newsletters, social media and blogs.
The RepRisk database currently includes information on over 25,000 companies, 6,000 projects, 4,500 NGOs and 4,000 governmental bodies. These numbers are continuously growing as relevant ESG information is added.
The use of RepRisk business intelligence allows companies and financial institutions to proactively assess ESG issues that may present financial, reputational and compliance risks. For more information about the usage and benefits of RepRisk in relation to the effective management of ESG risk, please visit our website: www.reprisk.com
About AfU Investor Research GmbH:
AfU Investor Research is specialized in the collection and analysis of information on investment funds. Its database contains the entire portfolios from over 30,000 such funds worldwide. The company compiles shareholder IDs, engages in investor targeting, and is involved in individual projects in the areas of investor relations, corporate finance and M&A as well as the development of trade-related tools.
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