By Patturaja Murugaboopathy and Simon Jessop
Record demand to invest in sustainable investment funds saw the sector’s total assets rise 19% to a fresh high of nearly $2 trillion in the first quarter, data from industry tracker Morningstar showed. The surge in interest marked the fourth quarter in a row that the sector’s assets have hit a record high, amid growing interest from investors for funds focused on environmental, social and governance-related issues.
“Inflows into ESG strategies are largely attributed to strong performance, more developed track records, and further awareness of ESG issues and factors,” said Loren Asmus, vice president, investment research at Canterbury Consulting.
“Active ESG and sustainable equity strategies have performed well over the last year given low exposure to traditional energy and high exposure to renewable energy.”