Sustainable fixed income funds experienced outflows in the first half of 2023 despite the popularity of their conventional peers, according to the LSEG Lipper UK ESG Fund Market H1 2023 report.
While inflows have been strong year-to-date for non-sustainable bond funds, netting £9.5bn, sustainable bond funds saw outflows of £653m. "Investors are clamouring for fixed income but, for whatever reason, that enthusiasm does not extend to sustainable funds," said Dewi John, head of research, UK and Ireland for LSEG Lipper. "We have previously speculated that the paucity of bond ESG flows was down to the fact that passive funds are taking all of the fixed income pie, and sustainable funds suffer from being mainly actively managed vehicles. Mainly, but not exclusively." Fixed in...
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