(August 2020)
Those watching the ESG market over the last several months will have noticed an interesting trend has been outperforming benchmarks. Within that performance, though, is a little-known fact that investors may want to take into account: actively managed ESG funds are outperforming passive ones, according to the Financial Times. This success has come out not only in returns, but also in fund inflows, as actively managed ESG funds held 4 of the top 10 spots for overall ESG inflows. There are currently 315 available sustainable open-end funds and ETFs.
(San Francisco)
FINSUM + Magnifi: While the general advantages of active management have been found to be lacking for several years, there are areas and circumstances where such management has an advantage. It seems that careful selection using ESG screens works during the pandemic and gives active managers (and their investors) a leg up. It makes sense as well, since certain considerations have become so much more important over the last few months and these can more easily be taken into account with an active approach.
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