News | 08.02.19
Hundreds of Conventional Funds Add "ESG" to Prospectus Just in Case
According to Morningstar, the prospectuses of more than 100 "conventional funds" have added environmental, social, and corporate governance (ESG) criteria since the start of the year, nearly doubling the total number of non-ESG fund prospectuses that now include such language. Jon Hale, Morningstar's global head of sustainability research, refers to this subgroup of funds as "ESG consideration" funds. "These funds are not being repurposed into ESG funds, but they have added language to the prospectus to say they are considering it, and then they sort of leave it at that," Hale said. "If anything further is included, it might be a caveat that explains ESG doesn't necessarily drive all the investment decisions."
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