10.08.2020

Record Inflows To ESG funds

ESG funds are providing a safe haven for active fund managers in the face of the ever-rising popularity of passively managed (index) funds.

September saw record inflows for active ESG equity funds. Investors committed a net £392m of new capital, taking the quarterly total of inflows to £1.0bn in Q3, almost ten times as much as Q3 2019. Year-to-date active ESG equity funds have attracted £2.4bn of inflows.

Key highlights from this month’s Fund Flow Index – October 2020:

  • Active ESG equity funds enjoyed record inflows in September – £392m
  • Active ESG equity fund inflows rose 10-fold between Q3 2019 and Q3 2020
  • Traditional active funds suffered £5.7bn of outflows year-to-date while ESG counterparts have seen £2.4bn of inflows
  • Index funds are the big winners, seeing £6.1bn of inflows so far in 2020
  • Traditional active funds have seen no net inflows of capital over the last four years, though they remain easily the largest category by AUM
  • Active ESG equity funds have accounted for all the cumulative new money flowing into active funds since late 2018
  • ESG funds help active fund managers differentiate themselves from index funds

Source: Calastone

Related articles

  1. Daily Email Feature

    BlackRock ESG Assets Pass $500bn

    Total assets under management grew to more than $10 trillion in 2021.

  2. Warsaw Stock Exchange Aims to Continue IPOs

    The global alternative asset management firm listed on Nasdaq.

  3. Regulator has proposed sustainability disclosures for fund managers and regulated asset owners.

  4. Canada Fragments

    The consolidated quote system for corporate bonds has raised funds to expand outside the US.

  5. European ETF Flows Double

    Bond funds saw strongest inflows since 2016.