𝟏. 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐟𝐮𝐧𝐝 𝐟𝐥𝐨𝐰𝐬 𝐚𝐛𝐨𝐯𝐞 𝐭𝐡𝐨𝐬𝐞 𝐨𝐟 𝐧𝐨𝐧-𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐟𝐮𝐧𝐝𝐬
In the wake of the Covid 19 crisis, sustainable fund flows increased significantly in 2020 to reach the record level of €227bn, up 84% vs 2019 (Source Morningstar Dec 2020). Non-sustainable fund flows were down 23% vs 2019 at €180bn. Sustainable fund flows were above those of non-sustainable funds and represented 56% of total flows in 2020 vs 32% over the past 2 years.
𝟐. 𝐄𝐪𝐮𝐢𝐭𝐲 𝐚𝐜𝐭𝐢𝐯𝐞 𝐟𝐥𝐨𝐰𝐬 𝐮𝐧𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐫𝐞𝐛𝐨𝐮𝐧𝐝
Sustainable Equity active fund flows reach €91bn, +248% vs 2019. Surprisingly non-sustainable equity active fund flows experienced a trend reversal with €28bn of positive flows vs €75bn of outflows in 2019. Overall Equity active flows represented 29% of total flows in 2020, a 10y record level.
👉If many investors are well aware of the first surprise, how many have in mind the second ? Ignoring evidence may lead to wrong investment decisions. Both active and passive investment styles have a role to play in portfolio.
Marlene Hassine Konqui