European retail SRI funds reach new peak of €108bn in AUM – Vigeo/Morningstar

Sector sees 14% growth according to new report

Assets under management (AUM) at European socially responsible investment (SRI) funds have reached a new peak of €108bn – or 1.7% of total retail fund AUM – according to a new report.

The assets have grown by 14% in the past year, said France-based ESG researcher Vigeo and Morningstar, the Chicago-based investment data group.

The number of SRI funds under the UCITS European fund banner, which has been stable for three years, has now increased to 922 across Europe – from 884 previously.

The Netherlands was the most dynamic market in terms of asset growth (+106%) followed by the UK (+30%), Sweden (+28%) and Switzerland (+18%). The Netherlands also has the highest rate of market penetration for SRI retail funds (15%, up from 7.4% in 2012).After years of strong growth, France decreased by 7% in terms of assets, but remains the largest market for SRI retail funds, followed by the UK and the Netherlands and Switzerland.

The BNP Paribas Mois, a fixed income French fund, is the largest SRI fund in Europe at €3.9bn. There are six French funds among the top 10 largest funds.

In terms of performance, this was led by FiNET Asset Management’s alternative energy fund LSF Asian Solar & Wind, which returned 101.8% over the year to June. Other strong performers include the Guinness Alternative Energy, ERSTE WWF Stock Climate Change, Delta Lloyd New Energy and DKB Zukunftsfonds funds.

The report adds that equity funds still outweigh fixed income funds, 54% to 33%.

The 13th annual edition of Green, Social and Ethical Funds in Europe is available here.