Sustainable stock market funds in the UK enjoyed positive flows in July, despite net flows into equities overall sinking into the red through the course of the month.
Net flows into sustainable vehicles reached £1.2 billon, with nearly 60% of this going to equity vehicles. Growth funds were also popular, but this was not enough to offset the net £830 million (€695.3 million) from equities overall, according to data from Morningstar.
Across all asset classes, excluding money market funds, net inflows totalled £2.4 billion despite the redemptions from equity funds – driven largely by strong flows into bonds nearly hitting the £2 billion mark.
Drilling down, sterling and global sterling-hedged bond funds were the favoured choice for investors.
In terms of individual firms, fund manager Baillie Gifford had its highest ever monthly net inflow on record with £991 million of new investment. “Its growth house style has been firmly in favour with investors,” Morningstar said.
BlackRock also enjoyed inflows to the tune of £776 million. The main contributor to this was its world ESG equity tracker strategy – a fund said to be popular with institutional investors looking to increase the overall sustainability profile of their portfolios.
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