Investors Back ESG in the Crisis

Sustainable and ESG funds bucked the trend in the Covid-19 sell-off, enjoying positive inflows, the latest Morningstar Global Sustainable Fund Flows Report reveals

Hortense Bioy, CFA 12 May, 2020 | 11:20AM

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Investors continued to pour money into sustainable funds in the first three months of 2020, even as the coronavirus pandemic unfolded. Investors across the globe put $45.6 billion into funds focused on environmental, social and governance (ESG) in the first quarter of the year. This compares with global outflows of $384.7 billion for the overall fund universe.

Total assets in sustainable funds stood at $841 billion at the end of March. While that's down 12% from the all-time high of $960 billion reached at the end of 2019, assets in the wider fund universe took a greater hit, declining by 18% is the Covid-19 crisis.

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About Author

Hortense Bioy, CFA

Hortense Bioy, CFA  is director of passive funds and sustainability research in Europe for Morningstar

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