On fund flows, defining ESG funds, BlackRock, and the loss of an SRI pioneer

John Hale writes about the increase in ESG investing:

We put out our Morningstar “Global Sustainable Funds Flows Report” this week, authored by my London colleagues Hortense Bioy and Elizabeth Stuart.

Here are the key takeaways: Driven by increased investor interest in ESG issues and sustainable investing, sustainable funds notched a record-breaking quarter in terms of flows, assets, and product launches.

Global inflows into sustainable funds were up 88% in the fourth quarter of 2020 to $152.3 billion. Continuing to dominate the space, Europe accounted for almost 80% of these inflows. The United States took in 13.4%, up slightly from 12% in the last quarter, while flows in the rest of the world also grew, clocking in at $11.1 billion for Canada, Australia and New Zealand, Japan, and Asia combined. This is up from $9 billion in the second quarter. Assets in sustainable funds hit a record high of $1,652 billion as of the end of December, up 29% from the previous quarter. Product development in the fourth quarter hit an all-time high, with 196 new offerings, including 37 in countries outside of Europe and the United States. Asset managers also continued to repurpose and rebrand conventional products into sustainable funds, with at least 250 such funds in Europe.

On fund flows, defining ESG funds, BlackRock, and the loss of an SRI pioneer | by Jon Hale | The ESG Advisor | Jan, 2021 | Medium

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