UK equity funds outperform their peers in the industry on ESG scores due to strong governance results, research from FE fundinfo has revealed.
The 2021 FE fundinfo ESG Market Review, which was published today, found that the average UK equity fund had a score of 8.60 based on MSCI's ratings process, about two points higher than those with a global (6.88) or regional focus (6.46), and three points higher than the average of 5.55 for emerging market equities. The report also found that the vast majority of UK equity funds (97.7%) were classed as ‘ESG leaders' under MSCI's methodology, compared to less than 40% of global and regional funds, and only 4% of emerging market portfolios. UK equity funds' strength in ESG scores came ...
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