Refinitiv Lipper has published its quarterly UK ESG fund market report today, which has revealed that mixed assets are the only ESG Fund Group to resist outflows in Q3’s febrile markets.
Asset Class: While bond, equity and mixed asset ESG funds are in the black for the first three quarters, a dour economic climate has seen money taken off the table in the third quarter.
Classification: Equity Global ESG leads for Q1-3, taking £10.9bn, despite outflows of £3.4bn for the third quarter, as investors pivot to Equity Global Income.
Performance: Popular US equity funds have lagged their conventional equivalents over one, three and five years, despite flows going strongly in their favour.
Fund manager: BlackRock is way out in front for Q1-3, with net inflows of £3.6bn. Its ESG equity inflows for the period stood at £6.5bn.
Dewi John, Head of Lipper Research for UK and Ireland, comments: “Over the first three-quarters of the year, equity, bond and mixed asset funds have resisted the negative flows that have beset their conventional peers. However, a waning tide will eventually see all boats lower, and that’s what we have seen in Q3, as flows went negative for ESG equities and bonds, with only mixed assets managing to keep a toehold in positive territory.”
