Sustainable funds attract record levels of investment 13 August 2019

Sustainable investment funds are becoming increasingly popular among investors, according to new research from analyst house Morningstar that suggests sustainable funds pulled in record levels of investor cash in the first six months of 2019.

In the first half of 2019 €36.9bn flowed into sustainable classified funds, more than any previous six-month period and approaching the 2018 full-year figure of €38bn. The surge in new investment helped assets hit a record level of €595bn, according to Morningstar. 

The research also suggests the growing levels of investor interest are built on solid foundations given sustainable badged funds are performing better than their traditional counterparts. Almost two-thirds of the European sustainable funds assessed by Morningstar beat the average performance for the wider market in the last 12 months, while around 34 per cent finished in the top quartile of their respective categories.