In Europe, in May 2021, total sustainable fund flows decreased by 18% vs April 2021. Both equity and fixed income fund flows waned (Source Morningstar 31/5/2021).
Despite this monthly decline, year-to-date sustainable fund flows continued to be sustained at €192bn, i.e. 16% only below the whole 2020 record level.
Sustainable passive fund flows showed the highest momentum. They stood at €53bn already very close to the level for the whole 2020 of €59bn. Sustainable active funds, on their side, gathered €139bn vs €172bn in 2020.
Sustainable passive fixed income fund flows registered a record high at €13bn and already exceeded the 2020 level of €11bn. The share of passive funds in the assets of sustainable fixed-income funds in Europe has nearly tripled in less than 3 years: from 5% in 2018 to 13% at the end of May 2021.
European investors are leaders in sustainable fixed income passive strategies with flows representing nearly 90% of worldwide sustainable fixed income flows. European investors are adopting those strategies at a quick rate. They offer an alternative form of engagement on systemic issues by influencing the way indices are built.
👉Focusing on both long-term trends and short-term adjustments is key to have a fair view.
Marlene Hassine Konqui