More than 70% of fund buyers are seeing an increase in their clients putting money into ESG strategies, according to ESG Clarity and Last Word Research’s third annual ESG report.
The report, Competing in an ESG World, is now available and features an expanded remit with insights from respondents in the UK, Ireland, the US, Europe, the Middle East, South Africa and Asia.
Last Word Research asked fund selectors to explain what mattered most to their clients when it comes to ESG concerns with the three following factors the most common:
- investing in companies with good corporate governance,
- not investing in socially damaging companies, and
- climate change.
Competing in an ESG World also tracks where money has been channelled over the past year. There were significant net inflows into funds that had received “high” or “above average” Sustainability Scores from Morningstar, while funds that received “average”, “below average” or “low” scores saw significant net outflows over the past 12 months.
Once again, by popular demand, ESG Clarity and Last Word Research have bought back our Brand Index, where respondents report the fund groups they consider to be top-tier ESG fund providers.
Quantitative researcher at Last Word Research and author of the report Lottie McGurk said: “This year our annual ESG report is bigger and better than ever, with respondents sharing their views from across the globe.
“With almost 90% of respondents reporting they and their company consider ESG factors when it comes to fund selection, this report is a must-have for asset managers.
“The report reveals in which asset classes fund buyers feel there are not enough ESG options, and where they would like to see more choices.
“Similarly, asset managers will want to see their ranking in our Brand Index, which is back for the third year. We asked our respondents to rank who they consider to be top fund managements houses when it comes to ESG… and the results are very surprising with some big names missing.”
If you would like to see the report full, please get in touch with Lottie McGurk on Lottie.mcgurk@lastwordmedia.com.
