Inflows into ESG funds rose by 72% in Q2 2020, according to Morningstar.
This brings the total AUM in ESG funds to $1.06tn, 13% of the total funds industry. $71bn entered ESG funds in Q2 of which $61.4bn came from European investors, the report says.
There are now 2,706 sustainable funds in existence with 125 new funds being launched in Q2, 107 of which were launched in Europe. The US saw $10bn of inflows into ESG funds with Asia Pacific seeing a $894m outflow. Morningstar said this is due to ‘churning’ when a fund is sold after gaining an immediate return.