Morgan Stanley released its Sustainable Reality report
earlier this week that puts to rest any preconceived notions advisors and investors might have about sustainable investing.
The returns are competitive… and then some.
Not only did Morgan Stanley’s study of 10,228 mutual funds and 2,874 separately managed accounts over the last seven years find that the median return of sustainable equity mutual funds met or exceeded traditional mutual funds 64 percent of the time, but did so with equal or lower volatility about two-thirds of the time.
“We believe sustainable investing will be a key in the mobilization of private capital towards addressing global challenges, but the growth and development of this space remains hampered by a lingering perception that sustainable investments require a financial trade-off,” Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing.
“Our review addresses the investment performance concern head-on, and the findings are very positive.”