Observations:

• Sustainable large cap growth funds gave up an average of 5.6% in September when the S&P 500 recorded a decline of 4.9%, its worst month this year as concerns regarding economic growth, inflation and higher for longer interest rates overtook market sentiment. Still, outside the long-short equity fund segment consisting of one sustainable fund that registered an average year-to-date gain of 17.3% across its three share classes, sustainable large cap growth funds are the best performing segment year-to-date. 
• Comprised of some 76 mutual funds/share classes and ETFs with $27.1 billion in net assets, the segment registered an average gain of 14.9% since the start of the year. Returns ranged from a low of 9.3% recorded by the Mirova US Sustainable Equity Fund C to a high of 35.2% registered by Invesco ESG NASDAQ 100 ETF. The top 10 funds in the segment posted an even more impressive average gain of 25.7% year-to-date.   
• Like the limited number of stocks that had been driving the performance of the broad market since the start of the year, for example, stocks like the best performing Nvidia Corp., up 213%, Meta Platforms, Inc Class A, up 149% or Tesla, Inc., up 103%, the best performance results year-to-date posted by sustainable large cap active and passively managed mutual funds and ETFs were recorded by funds with investments concentrated in some of the best performing growth stocks.
• Nvidia, Inc., benefiting from the artificial intelligence boom, was the most widely held stock, found in each one of the top 10 performing sustainable large cap growth funds, with levels of investment ranging from a low of 4.33% in the Parnassus Growth Equity Fund to a high of 7.19% held in the BlackRock Sustainable US Growth Equity Investment Fund.
• Nvidia was followed by holdings across eight to nine funds of Microsoft, Apple and Amazon with exposures of fund assets ranging from 2.57% to a high of 14.4%.