👀 News from the flow side : What happened in April 2021 in Europe to sustainable funds ?

19 May 2021

In April 2021, Sustainable mutual fund flows in Europe at €32bn were down 27% vs march 2021. Yet they continue to be sustained, 12% above the one-year average (Source: Morningstar data as of the end of April 2021).  

Sustainable passive fund flows are down 33% while flows to active funds are down 24% from March 2021. The latter continues to dominate sustainable flows since January, with almost 70% of total inflows.

Equity sustainable fund flows reached €19.7bn, ie a 31% decrease while fixed income sustainable fund flows decreased by 24% totalizing €6.6bn. Equity passive funds show the highest decrease inside the equity asset class at 34%.

Despite the decrease in April 2021, ESG fund flows remain sustained and above the one-year average for both active and passive funds. The passive fund flow trend is even more favorable with flows still 24% above the one-year average vs +7% for active funds.

👉A reliable and exhaustive use of data is key to produce fair analysis to help investors achieve their goals.

Marlene Hassine Konqui