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Non-European investors turn to European managers for ESG products
16 November 2020

The interest in integrating Environmental, Social, and Corporate Governance (ESG) considerations into investor portfolios is on the rise globally.

According to eVestment data and analysis, flows for long-only ESG strategies have been net positive for 13 out of the past 16 quarters. Investors have net allocated a total of +$119.3 billion to ESG products over that period. Equity strategies have seen the bulk of the inflows, with cumulative net allocations of +$61.3 billion to active equities and +$20.6 billion to passive equities. Global ESG equity products accounted for the majority of inflows over the past 4 years, buoyed mostly by Europe-domiciled investors. US ESG equity strategies have not been nearly as successful, historically, in terms of raising capital, but did post net inflows for the past six consecutive quarters, totaling +$8.5 billion.

Investors outside of Europe (in APAC and the Americas) interested in integrating ESG into their portfolio are turning to European managers for the best-fit strategies.

When non-European investor and consultant viewership is directed toward European firms, that interest is increasingly being directed toward ESG-focused strategies, accounting for almost 10% of their attention in 2020.

Percentage of ex-Europe Investor Views of Europe-Based Strategies Captured By ESG-Focused Products

ESG Data in eVestment

As interest in ESG increases, so does the need for deeper data on how managers implement their ESG approach. That’s why eVestment launched a next-generation ESG questionnaire to provide investors worldwide with deeper data on how managers actually implement ESG at the firm and strategy level – not just their stated ESG philosophies.

For more information on how to implement eVestment ESG data into your manager research, please reach out to solutions@evestment.com.

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