|
Laxman Pai, Opalesque Asia: Actively managed funds have dominated when it comes to investing based on environmental, social, and governance (ESG) factors, said a study.
In the U.S., net flows to long-term responsible funds quadrupled in 2019 to $20 billion, from $5 billion in 2018, and continued to grow during the first half of 2020 to reach $21 billion, said a new report from Broadridge Financial Solutions
A majority (68%) of ESG assets in the U.S. are now actively managed funds, it added.
Jag Alexeyev, Director Distribution Insights at Broadridge Financial Solutions said: "Active managers are in the driver's seat when it comes to ESG, but to maintain their edge in this segment, they need to highlight their agility to proactively manage risks, leverage active ownership, pursue dynamic high-conviction strategies and deliver sustainable outcomes."
ESG strategies represent an attractive segment for active managers, especially in equity strategies. Flows into ESG active equity funds during the trailing 12 months reached 15% of average assets in Europe and International cross-border markets, and 10% in the U.S.
Meanwhile, impact investing funds have remained consistent, at a 10% share in 2015, and an 8% share in 2020. Similar shifts are occurring within the U.S. market.
According to a separate survey from Broadridge of over 400 financial advisors, 81% of wirehouse advisors have assets in ESG products today, followed by the IBD (68%) and RIA (6...................... To view our full article Click here
|
RSS
