In January 2021, Sustainable mutual fund flows in Europe continued to be sustained as investor interest for green strategies was confirmed. January flows reached €41bn which is the second-highest figure ever. It is also close to December’s all-time record high of €43bn (Morningstar Jan 2021).
Active funds dominated the sustainable fund flows in January with close to 80% of inflows and increased by 10% vs December 2020 to reach a record high of €32bn. Active equity fund flows were up 10% and reached a record high of €21bn. In the fixed income space, active flows dominated and were stable vs December 2020 at €5bn in the context of decreasing total flows on fixed income funds.
Sustainable passive fund flows decreased in January 2021 to €9bn following December 2020 record high of €14bn. Yet they continued to be very sustained as this represents the third-highest month ever. Equity funds gathered the major part of the inflows toward sustainable passive funds.
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Marlene Hassine Konqui