Advertisement
Skip to Content

American Century Ginnie Mae Inv BGNMX Sustainability

| Quantitative rating as of

Sustainability Analysis

Author Image

Sustainable Summary

American Century Ginnie Mae Fund has several promising attributes that may appeal to sustainability-focused investors.

American Century Ginnie Mae Fund's holdings are exposed to average levels of ESG risk relative to those of its peers in the US Fixed Income category, thus earning it an average Morningstar Sustainability Rating of 3 globes. Competing funds in the category with ratings of 4 or 5 globes have less ESG risk in their holdings. Unlike impact, which measures positive environmental and societal outcomes attributable to an investment, ESG risk reflects the degree to which investments could be affected by material ESG issues like climate change and inequalities.

One key area of strength for American Century Ginnie Mae Fund is its medium Morningstar Portfolio Carbon Risk Score of 2.61 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. The fund is therefore well positioned to transition to a low-carbon economy. Currently, the fund's involvement in fossil fuels is negligible, and compares favorably with 0.57% for its average peer.

One potential issue for a sustainability-focused investor is that American Century Ginnie Mae Fund doesn’t have an ESG-focused mandate. A fund with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.

ESG Commitment Level Asset Manager

An ESG Commitment Level Asset Manager rating is not assigned to this investment.

Morningstar analysts award an ESG Commitment Level Asset Manager ratings to investments that also receive Morningstar Analyst Ratings. Not all investments currently have Asset Manager rating. Morningstar is expanding its coverage, prioritizing investments that are most relevant to investors.