Values-driven investing is gaining steam in the money management industry.
The number of investment products focused on environmental, social and governance factors has risen steadily in the last seven years, according to data provided by Morningstar, climbing to 277 total funds as of
"There is real investment infrastructure being built in the [values-based investing] space," says
In response to the resulting advisor demand, Cordes says,
Bannister also emphasizes an industry shift that has investors now rewarding companies for strong social- or values-related performance rather than simply screening out negative factors. Performance in these funds has also improved in recent years, she says.
"We do see a lot of investors who are looking for more sustainability options," she says. "A lot of it is both mission-driven but also performance-driven. We're seeing strong performance and sustainability is often going hand in hand."
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