Equity market slump continues to pound mainstream and SRI fund sales

SRI funds down by €938.2m for the month.

European retail SRI and green-themed fund sales followed the market down in September with SRI funds losing close to €1bn in assets, according to the latest available figures compiled for Responsible Investor by Lipper FMI, the investment data group. In another horrible month for mainstream equity funds as a whole, which lost €21bn in assets after outflows of €31bn in August, sustainability-themed funds suffered also. SRI, or RI Screened funds as they are labelled by Lipper FMI, recorded outflows and market depreciation of €938.2m in September, adding to the €1.1bn they lost in August, albeit after asset growth of €656.8m in July. RI screened’ funds are those which have undergone an ‘extra-financial’ ESG (environment, social and governance) screen in their stock selection process. The best selling fund in September was French insurer Macif’s Court Terme ISR fund, a money market SRI fund, with growth of €139.1m. Second was French financial services house, Groupama’s Crédit Euro ISR European credit fund with receipts of €79.9m.
Third was Belgian fund manager Petercam’s L Bonds Government Sustainable investment fund which grew by €55.4m.The biggest RI Screened fund is French asset manager, Amundi’s Tréso ISR fund with €7.2bn in assets. Second is Natixis’ Fonsicav money market fund with €3.9bn.
Green themed and norms-based European RI retail fund sales – labelled ‘RI Extended’ by Lipper FMI – recorded their fourth successive month of outflows during August, down by €375m That followed asset losses for the sector of €400m in August, €272.7m in July and €209.3m in June. RI Extended includes funds with multiple ethical exclusions, those following a norms-based strategy, and themed climate change and microfinance funds. Only one fund in the sector, Norwegian insurer Storebrand’s Likviditet cash fund, was in three figures with growth of €180.8m. Second was Austria’s Sparkassen’s ESPA BOND EUROMÜNDELRENT, which gained €73m. Third was French fund manager Ofivalmo’s OFI Trésor ISR money market fund with receipts of €34.2m. The biggest RI Extended fund is a recent conversion to sustainability criteria, Denmark’s Danske Invest Dannebrog Mellemlange Obligationer, bond fund with €2.5bn in assets. Second is Pictet’s Water Fund with €2bn.
See downloads: left hand column for fund stats