Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD

Sustainable investment funds hit trillion-dollar milestone


20 August 2020 at 4:18 pm
Luke Michael
The second quarter of 2020 saw sustainable funds increase by more than 70 per cent 


Luke Michael | 20 August 2020 at 4:18 pm


2 Comments


 Print
Sustainable investment funds hit trillion-dollar milestone
20 August 2020 at 4:18 pm

The second quarter of 2020 saw sustainable funds increase by more than 70 per cent 

Assets in sustainable funds globally have rebounded strongly from the coronavirus pandemic, hitting the US$1 trillion mark for the first time. 

Analysis from Morningstar found that the global sustainable market was boosted by the stock market recovery and growing investor interest in environmental, social, and governance (ESG) issues. 

This resulted in global inflows into sustainable funds rising by 72 per cent in the second quarter of 2020 to US$71.1 billion (A$99 billion).

Assets under management in sustainable funds also rebounded in the second quarter by 25 per cent, reaching an all-time high of US$1.06 trillion (A$1.48 trillion) at the end of June.

The bulk of second quarter sustainable investing inflows came from Europe (86.3 per cent), with the US accounting for around 14.6 per cent.                                   

Australia and NZ only accounted for 0.2 per cent of inflows, while Japan and the rest of Asia actually reported an outflow of 1.3 per cent.  

Analysts at UBS said in a research note that investors with a long-term investment horizon were increasingly adopting ESG investing as a risk-management tool.  

“Part of the interest in sustainable investing has been fuelled by the pandemic, which has highlighted the importance of investing in business models that are resilient to shocks,” they said.

“But we think the flight to sustainable funds is likely to persist.

They also said governments around the world were stepping up their support for green projects in recent years, both through regulation and fiscal spending. 

“This has intensified in the wake of the COVID-19 pandemic, as governments have committed to a green recovery,” they said. 

“This emphasis should add an additional impetus to the performance of ecologically friendly companies over the coming years.” 


Luke Michael  |  Journalist  |  @luke_michael96

Luke Michael is a journalist at Pro Bono News covering the social sector.

PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers? Get in touch at news@probonoaustralia.com.au or download our contributor guidelines.

Advertisement

CFRE

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Responsible investing matures in new decade

Maggie Coggan

Tuesday, 8th September 2020 at 6:00 am

New partnership looks to make investing in nature mainstream

Luke Michael

Tuesday, 1st September 2020 at 5:54 pm

US government looks to curb responsible investing enthusiasm

Luke Michael

Tuesday, 4th August 2020 at 5:21 pm

NHFIC finalises $562 million social bond

Luke Michael

Friday, 26th June 2020 at 4:39 pm

pba inverse logo
Subscribe Twitter Facebook
×

We need your help.

Since the outbreak of COVID-19, Pro Bono Australia has seen a devastating fall in advertising and less people posting on our job board, which is how we fund our free news service. You can show us that you value the work we do by making a contribution.

 Make a contribution 

You have Successfully Subscribed!