Delaware Ivy Accumulative Fund has a number of attributes that may meet the expectations of sustainability-focused investors, despite some issues worthy of attention.
This fund lands in the 10% of strategies with the highest ESG risk in the US Equity Large Cap Growth category, earning it the lowest Morningstar Sustainability Rating of 1 globe. Investors concerned about ESG risk may be better off with funds earning 4 or 5 globes as they tend to hold securities less exposed to ESG risk. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change and inequalities, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.
One potential issue for a sustainability-focused investor is that Delaware Ivy Accumulative Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate are more likely to align with the expectations of an investor who cares about sustainability issues.
One key area of strength for Delaware Ivy Accumulative Fund is its low Morningstar Portfolio Carbon Risk Score of 5.15 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy. Currently, the fund's involvement in fossil fuels is negligible, and compares favorably with 3.37% for its average peer.
The fund exhibits moderate exposure (3.84%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.