2,325 Sustainable Public Equity Funds Globally - There's Never Been More Choice
Key Insights
- The number of sustainable public equity funds has increased by 62% over the past three years.
- These funds now represent 13% of all public equity funds globally.
- Europe is the leading region for sustainable public equity funds, with 56% of the global total.
In-depth Analysis
The number of sustainable public equity funds has grown rapidly in recent years, reflecting the increasing demand from investors for investments that align with their environmental, social, and governance (ESG) values.
There are now 2,325 sustainable public equity funds globally, representing 13% of all public equity funds. This is a significant increase from the 1,436 sustainable public equity funds that were in existence three years ago.
The growth in sustainable public equity funds has been driven by a number of factors, including:
- Increasing awareness of ESG issues: Investors are becoming more aware of the importance of ESG issues, and they are increasingly looking to invest in companies that are committed to sustainability.
- Government regulation: Governments around the world are introducing regulations that require companies to disclose their ESG performance. This is making it easier for investors to identify sustainable investment opportunities.
- Performance: Sustainable public equity funds have performed well in recent years, compared to traditional public equity funds. This has made them more attractive to investors who are looking for both financial returns and social impact.
Europe is the leading region for sustainable public equity funds, with 56% of the global total. This is followed by North America, with 22% of the global total. Asia-Pacific is the third-largest region for sustainable public equity funds, with 12% of the global total.
The growth in sustainable public equity funds is expected to continue in the coming years. As more investors become aware of ESG issues and the performance of sustainable investment strategies, they are likely to allocate more of their portfolios to these funds.
Implications for Investors
The growth in sustainable public equity funds provides investors with a wider range of options for investing in companies that are committed to sustainability. Investors should consider the following factors when selecting a sustainable public equity fund:
- Investment philosophy: Investors should understand the investment philosophy of the fund and ensure that it aligns with their own values.
- Performance: Investors should compare the performance of the fund to that of traditional public equity funds.
- Fees: Investors should be aware of the fees associated with the fund and compare them to those of other sustainable public equity funds.
By carefully considering these factors, investors can select a sustainable public equity fund that meets their individual needs and goals.
Conclusion
The growth in sustainable public equity funds is a positive development for investors and for the environment. These funds provide investors with a way to invest in companies that are committed to sustainability, while also generating competitive financial returns.
