Summary:
Investors seeking outsize returns can focus on high-quality, sustainable funds. Morningstar offers tools like ESG Risk Rating and Low Carbon Designation to screen suitable options. Funds with Medalist Ratings of Bronze, Silver, or Gold indicate potential outperformance.

Top-Rated Funds:
1. Fidelity European Dynamic Growth: Gold rating, led by experienced manager with a strong research platform. Emphasizes growth, economic moats, and mid-large cap holdings. Portfolio favors sectors like consumer and healthcare, with a Low Carbon Designation.
2. Dodge & Cox Worldwide US Stock: Gold rating, research-driven with focus on competitive advantages and capable management. Diverges from benchmark with sector shifts, holds some high ESG risk companies.
3. GuardCap Global Equity: Silver rating, with a concentrated portfolio favoring quality growth. Majority of holdings have Low ESG Risk Classification, earning 5 globes and a Low Carbon Designation.

Read more at Morningstar: 3 Top-Rated Sustainable Funds | Morningstar UK