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January 31, 2018 at 06:02 AM
Sustainable fund assets under management in the U.S. had estimated net inflows of $2.9 billion in 2017, a tepid 1.5% increase over 2016, according to a new report from Sustainable Research and Analysis.
However, the trend is expected to accelerate, the report’s author, Henry Shilling, said in a statement.
Shilling noted that “while lines in the sector may be blurring in the future, fund flows into the sustainable investing sector should pick up as the segment continues to pivot away from a focus on religious/ethical and exclusionary strategies in favor of integrating [environmental, social and governance] factors to improve fundamental investment decisions and with increasing emphasis on shareholder engagement and proxy voting.”
He said the trend is likely to accelerate with the entry of traditional investment managers.
Last year, JPMorgan and Morgan Stanley not only launched sustainable products, but also repurposed existing funds by adopting ESG strategies that combine with fundamental investment decisions to inform better investment decisions. In doing so, they ascended into the ranks of the top 10 firms in the segment.
Other traditionals, such as Pimco, AllianceBernstein Investments and Fidelity, have also entered the sustainable investing sphere with active and/or passive offerings.
Putnam Investments recently announced that it will roll out two actively managed ESG Funds in March, pending approval by the Securities and Exchange Commission.
