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How have sustainable funds performed during the downturn?

Employee
Employee
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Sustainable funds outperformed their conventional peers last year but how have they faired during the market downturn? This analysis can be performed in the Morningstar Direct Cloud edition.

The first step is to create a screen of funds for a specific Morningstar category. To create a new screen, click the Create icon in the top right corner header, and select Screen

Create screen.png

The Screener window opens.  You are prompted to choose your investment type.  In this example, Exchange-Traded Funds and Open-End Funds have been selected.

ETF Open End.jpg

From here you are taken to the Add Criteria screen.  In the Search for Data Points field, you can begin typing the data point you wish to screen for, and the system will dynamically retrieve the data points available.  Once the data point you wish to add populates, simply click on it to add it to your criteria.

Large blend category.jpg

The criteria that was added to the screen below is:

Criteria

Value

Morningstar Category

Large Blend

Sustainable Investment - Overall

Yes

Oldest Share Class

Yes

 

After adding the criteria, click Done to proceed.

Large blend screen sustainable.jpg

Next, you will customize the Manager Research data set and add the Sustainable Investment - Overall data point. Click the Data Set menu and select Edit, this will allow you to add additional data points.

Editing data set.jpg

In the search filter, type sustainable investment, then select Sustainable Investment-Overall. Drag-and-drop the data point to the left until it is to the right of Morningstar Rating 3Y. Click Edit in the Total Ret % Rank 3Y data point. Click the Period drop-down and select Year-to-Date. Then click OK and click Done.

Edit data point.jpg

The last step is to apply conditional formatting so that you can easily see how many of the sustainable funds ranked high in their category. In the top right corner, click Show Peer Analytics. Enable conditional formatting by toggling on the feature.  Be sure to select Total Return % Rank under the All Numeric Data field.  Click Apply to view the conditional formatting within the Total Return % rank column.

conditional formatting.jpg

Sort by ascending order to see how many funds ranked in the top quartile. Note that the funds highlighted in green have ranked in the top quartile.

Save conditional formatting.jpg

To save the data set, click the Data Set menu and select Save. Name the edited data set and click OK.

updated data set.jpg