Where are fund buyers increasing exposure to ESG funds?

European wealth managers are expecting to increase their allocations to impact funds and funds aligned with the UN’s Sustainable Development Goals (SDGs) over the next year, according to research from MA Financial Intelligence.

They will also be looking at where they can increase exposure to ESG-themed funds, ESG core bond funds and ESG core equity funds, ESG Clarity’s in-house research team found after surveying 234 fund buyers across Europe and 71 in the UK over January and February this year.

Specifically, 15% said they would ‘increase strongly’ over the next 12 months exposure to impact funds, followed by 9% each respectively expressing the same sentiment for SDG-aligned, ESG-themed and ESG core equity funds.

When asked where they would ‘increase’ exposure, 57% said ESG core equity funds, 56% said ESG-compliant core bond funds, 54% said active ESG solutions and 53% opted for ESG-themed funds.

How do you expect your allocation to ESG funds to change over the next 12 months?

How do you expect your allocation to ESG funds to change over the next 12 months?
Source: MA Financial Intelligence

To find out more about how fund buyers are integrating ESG in their products and business, consider ESG when it comes to fund selection, create ESG fund buy lists, score asset managers on ESG and engage with clients please contact frank.reed@markallengroup.com or darian.bowers@markallengroup.com.

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Natalie is editor in chief at MA Financial covering ESG Clarity, Portfolio Adviser and International Adviser. She was previously global head of ESG insight for ESG Clarity and has been an investment journalist…

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