A “tsunami of assets is poised to invest” in ESG

11 Feb, 2020 08:21
source: Singularity Financial

Environmental, social and governance (ESG) is increasingly becoming a part of the mainstream as investors become more aware of issues such as climate change and want to use their portfolios to make a positive impact.

According to recent fund flow data tracking by Refinitiv, we can see over 100% yoy growth rate consistently for both equity and bond fund flows since 2017.

source: Refinitiv.com

A “tsunami of assets is poised to invest” in ESG, according to Bank of America report that came out in September 2019, predicting “over $20 trillion of asset growth in ESG funds over the next two decades”.  That’s as much as is invested in S&P 500 funds today.

Ethical themed investing may be on the rise, but can investors do good and achieve good returns at the same time?

Yodelar’s performance analysis of 140 ethical funds featured in interactive investors ethical fund list shows that they can with approximately 1 in 10 sustainable funds consistently outperforming their peers.

Source: Yodelar