Morningstar: Sustainable fund subscriptions hit £37.1bn in 2021

Investors opt for active strategies

Subscriptions into sustainable vehicles reached £37.1bn in 2021, exceeding the total market new inflow figure of £27.4bn, according to a recent Morningstar fund flows report.

For the first time in seven years, active strategies had higher inflows than passive ones, thanks in part to consistent interest in sustainable funds, evidenced in four BlackRock trackers which totalled £8bn between them over the course of 2021. Diversified allocation funds had a second consecutive year of strong inflows, though figures came in lower than in 2020 due to overall lower net inflows in the second half of the year. Baillie Gifford Managed had the highest inflows in the sector, though sustainable strategies were the key propellent across the asset class. Passive trumps acti...