“APAC ESG ETFs see assets double to US$2 billion from 2015” – The Asset ESG Forum – August 6, 2019

On August 6, 2019 The Asset ESG Forum noted that “(d)emand from domestic investors is pushing growth of exchange traded funds (ETFs) in the still nascent environmental, social and governance (ESG) investment space of Asia’s fund management industry, according to a new report released by Broadridge Financial Solutions, Inc., a global fintech firm and part of the S&P 500® Index. 

The report found there are signs of growing acceptance across the industry, led by institutions. Elsewhere, easing interest rate-hike expectations reignited interest in fixed income strategies during the first quarter of 2019.”

The Asia Pacific region “is experiencing encouraging growth in ESG funds, especially in Australia, China and Japan, while Q1 sees strongest regional bond net flows since Q4 in 2016.”

You may read the article on The Asset ESG Forum internet site.

“Sustainable Reality: Analyzing Risk and Return of Sustainable Funds” – Morgan Stanley Institute for Sustainable Investing – August 6, 2019

On August 6, 2019 the Morgan Stanley Institute for Responsible Investing published a white paper entitled, “Sustainable Reality:  Analyzing Risk and Return of Sustainable Funds.”

The white paper “analyzed 10,723 funds, using Morningstar data on exchange traded and open-ended mutual funds active in any given year from 2004-2018. The key findings:

  • There is no financial tradeoff in the returns of sustainable funds and traditional funds. No consistent or statistically significant difference in total returns existed between ESG-focused and traditional mutual funds and ETFs.
  • Sustainable funds may offer lower market risk. Sustainable funds experienced a 20% smaller downside deviation than traditional funds, a consistent and statistically significant finding.”

You may read more and download the white paper from the internet site of the Morgan Stanley Institute for Sustainable Investing.