The rise of sustainable investing: Market view and analyst reviews #1.
"Assets in sustainable mutual funds and exchange-traded funds (ETFs) hit an all-time high of USD 1.2 trillion at the end of the third quarter of 2020, with flows outstripping the overall market. We expect a strong continuation of this trend in 2021 and beyond, as investors finally lay to rest the notion that sustainable investing compromises returns. Shifting societal values and greater regulatory pressure are further strengthening client demand, lending additional support to this transformation in the investment landscape".
#MichaelBaldinger, Head Sustainable and #ImpactInvesting, #UBS Asset Management.
In 2019, sustainable investing (SI) was the fastest growing fund category. By the end of the third quarter of 2020, while the overall market was reporting a net new money run rate of just 1%, down from 3% at the same point in 2019, the sustainable investing net inflow rate was running near 2019 levels, reaching 36%. Strikingly, within that number, flows into climate funds dominated, recording 56% inflows on an annualized basis.
#AndrewLee, Head Sustainable and #ImpactInvesting of #UBS Global Wealth Management says, "Investors are increasingly factoring in environmental, social and governance (ESG) considerations because they can be financially material and useful in analysis and decision-making. We expect the next wave of growth will be driven by investors actively seeking to identify and address sustainability challenges in areas ranging from climate to inequality to healthcare. In a recent survey, 62% of family offices indicated that impact investments will be a key focus".
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