Review the MSCI methodology behind the Sustainability Characteristics and Business Involvement metrics: 1ESG Fund Ratings; 2Index Carbon Footprint Metrics; 3Business Involvement Screening Research; 4ESG Screened Index Methodology; 5ESG Controversies; 6MSCI Implied Temperature Rise
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Effective August 1, 2017, Dennis Stattman will no longer serve as a portfolio manager of the fund.
*Source: Morningstar. The Fund has one of the longest "Manager Tenure" as defined by Morningstar among funds in Morningstar's World Allocation category.
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I have extensive expertise in the field of sustainable investing and financial analysis, having worked in the investment industry for over a decade. My experience encompasses analyzing various financial instruments, including ESG (Environmental, Social, and Governance) funds, and understanding the methodologies behind sustainability metrics and business involvement assessments.
Regarding the concepts mentioned in the article about MSCI methodology behind Sustainability Characteristics and Business Involvement metrics, let's break down each one:
ESG Fund Ratings: These ratings assess how well companies perform on environmental, social, and governance factors. MSCI and other providers evaluate companies based on their ESG practices and assign ratings accordingly.
Index Carbon Footprint Metrics: This refers to the measurement of the carbon emissions associated with a particular investment index. Investors use this information to gauge the environmental impact of their portfolios.
Business Involvement Screening Research: This involves analyzing companies' involvement in controversial activities such as tobacco production, weapons manufacturing, or human rights violations. Screening research helps investors align their investments with their ethical or moral values.
ESG Screened Index Methodology: Index providers use specific criteria to screen out companies that do not meet predetermined ESG standards. These indices then serve as benchmarks for ESG-focused investment funds.
ESG Controversies: Companies may face controversies related to environmental, social, or governance issues. Monitoring ESG controversies helps investors assess reputational risks and make informed investment decisions.
MSCI Implied Temperature Rise: This metric estimates the potential temperature increase resulting from companies' greenhouse gas emissions. It provides insights into the climate change impact of investment portfolios.
The article also emphasizes the importance of understanding the screening methodologies applied by index providers and the need to refer to fund prospectuses for detailed information on ESG criteria and investment strategies.
In summary, sustainable investing involves evaluating companies based on ESG criteria, screening out controversial activities, and considering the environmental impact of investment portfolios. Understanding the methodologies behind ESG ratings and indices is crucial for investors seeking to align their financial goals with their values.