Asset managers have consequently expanded their offerings to align solutions with client needs. Q3 2020 data released by Morningstar1 indicates that global inflows into sustainable funds were up 14% to $80.5bn, while sustainable product development hit an all-time high with 166 new offerings (including 38 in countries outside of Europe and the U.S.). Asset managers also continued to repurpose and rebrand conventional products into sustainable funds, with 32 of such funds in Europe.
This growth is driven by several key factors which we explore further in this article: societal expectations, regulatory demands, and the search for yield.