Wednesday, September 22, 2021
Finance

ESG inflows boost Candriam’s assets to $177 billion

ESG

Candriam said the gains meant it had hit its five-year asset growth target six months ahead of schedule

European investment manager Candriam said its total assets increased 7.1% to 150 billion euros ($177 billion) in the first six months of the year, boosted by net inflows into its environmental, social and governance-focused (ESG) funds.

Demand to invest in ESG-related funds has surged over recent years as the world looks to move to a low-carbon economy in the fight against climate change, and as social issues such as diversity take on greater importance for investors.

Candriam said the gains meant it had hit its five-year asset growth target six months ahead of schedule, rising more than 50% since the goal was set in 2016.

The main reason for the growth is the ESG trend, Candriam Chief Executive Naim Abou-Jaoude told Reuters. In 2021, 90% of the net sales came from ESG products, compared with 50%-60% over the previous three years.

The trend is accelerating, he added, with some clients shifting out of vanilla actively managed funds to sustainable funds, and demand from private clients increasing.

Net inflows accounted for 4.2 billion euros ($4.98 billion) of the 10 billion euro ($11.86 billion) half-year asset gain, with the balance from positive investment performance. Total assets at the end of December 2020 were 140 billion euros ($166.08 billion).

Of the inflows, 1.9 billion euros ($2.25 billion) went into sustainable-focused global credit and high-yield funds, 1.1 billion ($1.30 billion) went into equity funds, of which 600 million euros ($711.76 million) was sustainable equity, 800 million euros ($949.02 million) went into thematic funds and 400 million ($474.51 million) into absolute return.

Among the most in demand thematic funds during the period were the 1.9 billion euro ($2.25 billion) Oncology Impact Fund, with inflows of 180 million euros ($213.53 million), and the 1.07 billion ($1.27 billion) Climate Action Fund, with inflows of 250 million euros ($296.57 million).

Important:

The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

nineteen − three =