Sustainable funds captured 52% of new investor cash last year and represented 11% of total net assets in Europe as of 31 December 2020, the Association of the Luxembourg Fund Industry stated on Tuesday 15 June.
For sustainable funds domiciled in Luxembourg, the figures were 44% of fresh cash and 10% of total net assets, or €371bn, at the end of last year.
In a press release, Hortense Bioy, global director of sustainability research at Morningstar, said:
“Asset managers have started reporting high numbers of ‘green’ funds in accordance with the Sustainable Finance Disclosure Regulation (SFDR). Interpretations of the new regulation vary and the debate around what constitutes a sustainable investment is far from being settled. But we can confidently expect that, from 11% today, ESG funds will be representing a much larger share of the overall fund market in the coming years.”
The report was commissioned by Alfi, which represents the country’s asset managers and fund services providers, and carried out by Morningstar, one of the world’s largest fund research firms, and Zeb, a management consultancy focused on the financial sector. It examines a number of regulatory, ratings and competitive trends.
The report will be issued in July. To obtain a copy, contact Alfi.