Net flows to ESG funds quadrupled to $20 billion in 2019

Broadridge report finds ESG accounts for 10% of assets in active equity funds.

Net flows to long-term responsible funds quadrupled in 2019 to $20 billion, from $5 billion in 2018, and continued to grow during the first half of 2020 to reach $21 billion, according to a report by Broadridge Financial Solutions.

The report also found that 68% of environmental, social and governance assets in the U.S. are now in actively managed funds. Flows into ESG active equity funds during the 12 months ending in August reached 10% of average fund assets in the U.S.

[More: BlackRock, Vanguard, Transamerica roll out latest ESG funds]

According to a separate survey by Broadridge of more than 400 financial advisers, 81% of wirehouse advisers have assets in ESG products today, followed by those in the independent broker-dealer (68%) and registered investment advisory (60%) channels.

Twenty-four percent of financial advisers reported that they saw an increase in client interest in ESG as a result of the COVID-19 pandemic.

[More: 3 keys to integrating ESG into client portfolios]

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