LONDON and NEW YORK, Dec. 2,
2021 /PRNewswire/ -- A new report from Broadridge Financial
Solutions, Inc. (NYSE: BR), a global Fintech leader, reveals assets
in dedicated environmental, social, and governance (ESG) mutual
funds, ETFs, institutional mandates, and private funds are on track
to grow from $8 trillion today to as
much as $30 trillion by the end of
this decade. Asset managers stand to win up to $9 trillion of net new flows, with expanding
opportunities through thematic strategies, climate transition and
net zero solutions, and investments offering measurable
sustainability impacts.
Net flows into ESG mutual funds and ETFs have risen dramatically
this year to $577 billion in the nine
months through September 2021, far
surpassing the full-year total of $355
billion for 2020. The center of gravity in ESG
investing continues to evolve from value and risk considerations
towards sustainability impacts, putting greater demands on asset
managers to show evidence of the results achieved.
"ESG strategies accounted for just 11% of overall mutual fund
and ETF assets but captured 30% of inflows during the twelve months
through September 2021" says Jag
Alexeyev, Head of ESG Insights at Broadridge Financial
Solutions. "While growth remains strong, the complexities
and costs of ESG implementation have risen, and fund selectors have
begun to ask harder questions, In addition, greenwashing has
emerged as a key reputational risk that firms must address.
Improving a manager's sustainable investment capabilities,
enhancing transparency, and amplifying communication of results can
help establish credibility and strengthen client
relationships."
ESG driving impact and other key findings from the report
show:
- Among actively managed strategies, ESG drove more than 100% of
flows in local European funds and 62% of flows in cross-border
European and International markets.
- The EU's Sustainable Finance Disclosure Regulation (SFDR) has
reshaped the business. In response to SFDR, firms identified more
than 5,700 funds as Article 8 ESG or Article 9 sustainable
investment products with combined assets of $4.1 trillion (€3.6 trillion) as of September 2021.
- Demand for thematic strategies has reinforced the ESG trend.
Thematic equity funds captured $303
billion in net inflows worldwide in the twelve months
through September 2021, ten times
greater than the amount in 2019. Dedicated ESG products represented
65% of that total.
Visit this link to download Broadridge's ESG and Sustainable
Investment Outlook Report.
Methodology
This report was conducted using Broadridge's Global Market
Intelligence platform. Broadridge's proprietary Global Market
Intelligence platform provides an integrated analytics solution for
the asset management market tracking institutional and retail
products globally. Broadridge provides insights into more than
$100 trillion of tracked assets,
covering every market in every region, and 80,000 globally tracked
funds.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with $5 billion in revenues,
provides the critical infrastructure that powers investing,
corporate governance, and communications to enable better financial
lives. We deliver technology-driven solutions that drive business
transformation for banks, broker-dealers, asset and wealth managers
and public companies. Broadridge's infrastructure serves as a
global communications hub enabling corporate governance by linking
thousands of public companies and mutual funds to tens of millions
of individual and institutional investors around the world. Our
technology and operations platforms underpin the daily trading of
more than U.S. $9 trillion of
equities, fixed income and other securities globally. A certified
Great Place to Work®, Broadridge is part of the S&P 500® Index,
employing over 13,000 associates in 21 countries. For more
information about us please visit broadridge.com.
Media Contacts:
Europe
Hannah Polson
Cognito
+44 (0) 7974244217
BroadridgeEMEA@cognitomedia.com
North
America
Matthew
Luongo
Prosek Partners
+1 646-818-9279
mluongo@prosek.com
Asia
Pacific
Kainoa
Blaisdell
Teneo
+65 6955 8874
ASIA-broadridge@teneostrategy.com
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SOURCE Broadridge Financial Solutions, Inc.