Sustainability funds record strong inflows in Europe

Sustainability funds record strong inflows in Europe
Sustainability is a hot topic – also in the fund industry: in 2019, the assets of sustainability funds were able to record an increase of 56%, according to information from Morningstar. According to this, more than one in three euros invested went into funds that select their investments according to ethical, ecological and social criteria.

The net inflow in the sustainability portfolios last year thus amounted to around 120 billion euros, which represents around 37 percent of the total inflows of the European fund industry. On balance, European sustainability funds were able to post a new record: Assets under management rose to around 668 billion euros.

However, ESG index funds are also benefiting from this development, increasing their share of total ESG fund assets to 21%. The number of European ESG funds rose to 2,405 funds, including ETFs, by the end of 2019. The fund industry has thus successfully embraced the sustainability trend and launched numerous relevant products with this label – 360 new products were launched in 2019 alone.

 
On the other hand, it can also be observed that already established conventional funds are being given a green coat of paint: They are being rededicated in line with the latest trends. In 2019, this applied to 39 funds, after this strategy had been applied to 49 funds in 2018.