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Dedicated ESG strategies’ share of investor and consultant views doubled in 5 years
14 October 2020

Highlights

  • Platform share of views to ESG strategies doubles from 3% to 6.1%
  • Investors’ share of views to ESG strategies growing, especially in Europe ex-UK
  • Corporate pensions showed elevated interest in ESG last quarter

Over the last 5 years, investor and consultant views to products that have explicitly noted themselves to be dedicated ESG strategies have doubled as a proportion of all platform views, from 3% to 6.1%. The latter figure is in line with these ESG strategies’ representation of currently active products on the eVestment platform.

Investor & Consultant Views to Dedicated ESG Strategies

Source: eVestment Advantage, as a percentage of all views.

Consultant clients (which include manager of managers) are the dominant drivers of ESG views, but investor clients’ share of views to ESG has doubled in the last 5 years too, from 11.2% to 23.3%. In Q3 2020, corporate pensions were responsible for 8.2% of all views to ESG products, double their quarterly average of 4.1% since Q4 2015.

Proportion of Views to Dedicated ESG Strategies By Client Type

Source: eVestment Advantage

Investors located in Europe ex-UK are leading the way in terms of the proportion of profile views going to dedicated ESG strategies relative to their total product view; in Q3 2020, one in six of their views (15.9%) went to ESG products. Investors in the U.S. on the other hand, were less likely to look at ESG product profiles (just 4.2% of their entire Q3 views).

Consultant clients in the U.K. are dedicating the highest proportion of their views to ESG products relative to other regions. U.S.-based consultant views to ESG are rising steadily and continue to be slightly higher as a proportion of their total viewership activity compared to U.S. investors (about one percentage point higher).

Despite a lower proportion of ESG profile views relative to other regions, U.S.-based clients still view the most ESG products by volume – 30% of investor views and 63% of consultant views last quarter. But clients in other regions are becoming more proactive on the ESG front as well, especially investors in Europe ex-UK who made up almost a quarter of the investor views last quarter, and consultants in the U.K. who have been responsible for double-digit viewership share over the last 5 quarters.

Views to ESG Strategies

Source: eVestment Advantage, rolling four quarter views as a percentage of all products views within investor region

Proportion of Views to ESG Strategies

Source: eVestment Advantage, by investor location

Views to ESG Strategies

Source: eVestment Advantage, rolling four quarter views as a percentage of all products views within investor region

Proportion of Views to ESG Strategies

Source: eVestment Advantage, by investor location

The doubling in ESG strategies’ viewership share from 5 years ago, paired with the rising share of interest coming directly from investors and diversified across multiple regions, should bode well for this group of products in the quarters to come.

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