SRI equity fund sales rebound – RI/Lipper FMI fund stats

Cash funds remain biggest SRI sellers, green themed funds stay in the black.

Improved sales of European SRI equity funds contributed notably to the growth of the sector during July, with eight of the top ten funds invested in listed equities, according to the latest available figures compiled for Responsible Investor by Lipper FMI, the investment data group. The sector as a whole took in €822.3m, adding to the €760.7m that moved back into funds in June. SRI funds or ‘RI Screened’ as they are labelled by Lipper FMI, are those that have undergone an ‘extra financial’ ESG (environment, social and governance) screen in their stock selection process. Despite the return of bullishness for SRI equity funds, cash funds remained the top sellers over the month. Allianz’s Securicash SRI money market fund was the leader in terms of inflows, taking in a sizeable €909.4m over the month. Much of the new money is believed to have resulted from the transfer of two existing money market funds into the Securicash SRI fund. This contributed significantly to the overall sector sales performance, which was broadly lower than the previous two months. Second placed was Belgium fund manager, KBC’s Alternative Energy fund, which netted €91.9m in sales. Third was France’s Credit Mutuel’s UFG Sarasin Tréso ISR cash fund, which took in €39.7m. French domiciled SRI cash funds continue to dominate the RI Screened sector in terms of size. The largest fundis Allianz’s Securicash with €2.85bn. Second is Société Générale’s SGAM Invest Monetaire ISR with €1.74bn. Third is BNP Paribas’ Moné Etheis fund with €1.14bn.
The total value of the RI Screened sector is €47.4bn. Sales of green themed funds (labelled by Lipper FMI as ‘RI Extended’ which includes funds with multiple exclusions, those following a norms-based strategy and themed climate change and microfinance funds) also remained positive during July with total sales of €145.1m, but down against June sales of €290.3m. The biggest seller was US manager Blackrock’s Luxembourg-domiciled New Energy Fund with inflows of €31.5m. Barclays’ Dublin-based iShares S&P Global Clean Energy fund was second with sales of €19.4m. The iShares business was sold along with its parent company Barclays Global Investors during June to Blackrock. Third spot went to BNP Paribas’ EasyETF Global Renewable Energy fund, which netted €15.8m. The largest green ‘RI Extended’ fund remains Blackrock’s New Energy Fund with €2.5bn. Second is Pictet’s Water Fund with €2.2bn. Third is Pioneer’s global ecology fund with €847.6m.
The sector value is €15.2bn. Mainstream equity fund sales for July were €12.3bn in a total sector worth €1.4 trillion.