Investor flows into sustainable funds exploded in 2019, setting not just a new record but one almost four times the previous one, from 2018.
Flows into sustainable funds totaled $20.6 billion in 2019 compared with $5.75 billion the year before. Fourth quarter flows led the upsurge, jumping to $7.1 billion from $5 billion in all previous quarters last year.
“With growing investor interest in sustainable investing, especially among younger investors, 2019’s flows may be the leading edge of a huge wave of assets to come,” wrote Jon Hale, Morningstar’s head of sustainability research, in an article on the Morningstar website.