Jon Hale and San Lie of Morningstar analyse whether funds with a ‘socially conscious' theme really do underperform their more mainstream counterparts, or if this is just a modern myth.
One of the concerns about sustainable investing in its various forms is it comes with a financial performance penalty. Yet more and more academic and industry studies are demonstrating that sustainable investing does not underperform conventional investing, and there is mounting evidence that incorporating environmental, social, and governance (ESG) factors in to an investment process can have a positive impact on performance. Alliance Trust: Our argument for a 'sustainable' investment strategy In a 2014 meta-study, researchers at Oxford University analysed nearly 200 studies, re...
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