Responsible investment surges in Europe

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The FINANCIAL — Responsible investment funds have almost doubled in size since 2010, figures show. Asset under management reached €476 billion, managed by 2,413 funds at the end of 2016, according to figures from KPMG Luxembourg and Broadridge.

Assets under management grew 26.6% from 2014 to 2016. The Luxembourg funds industry association Alfi, which commissioned the report along with LuxFlag, said Luxembourg had strengthened its position as number one domicile for responsible investing funds in Europe, accounting for 31% of funds and 35% of total assets under management.

Funds applying positive and negative screening strategies continue to have the largest market share with, 1,687 funds and €423.3 billion assets under management.

“Large institutional investors have started to publicly announce their divestments from coal, whilst asset managers are decarbonising their portfolios and launching more climate funds. Unsurprisingly, our statistics on the European responsible investing fund market, reflect this increasing trend,” said Charles Muller, head of responsible investing at KPMG Luxembourg.

Alfi said the market had seen a clear boost in climate finance because since the COP21 agreement in Paris, renewable energy and climate change funds have increased their share to 36% in the environment category, encountering a significant growth in the number of funds (42%) and assets (47%) since 2014.


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