ESG funds on offer grew 89% in 2022 as fees rose

Fitz Partners research

The number of ESG-labelled funds in Europe grew up 89% last year, even as fees rose on the products.

A study from Fitz Partners examined both the number of ESG products on offer, as well as the cost of the products in comparison to non-ESG products, finding that the price gap was continuing to narrow. ESG-labelled funds still remained cheaper than non-ESG funds, with ESG equity funds sitting at an average fee of 0.78%, while non-ESG products cost an average of 0.80%. Similarly, ESG labelled bond funds averaged a fee of 0.50%, while non-ESG bond funds sat at 0.53%. The study, which was based on over 4,000 products covering $500bn in assets, noted that the closing gap was largely at...