'Tidal wave' of ESG inflows continues but returns can't hold up, warns RWC

European ESG stocks continue to see a "tidal wave" of inflows, but the levels of capital flooding in to certain stocks has far surpassed the fundamental outlook for the stocks, leaving investors' at risk of losses, according to RWC Partner's Graham Clapp. ESG has emerged as one of the winning trends this year, with the theme taking in more and more money. IA statistics released this month revealed responsible investment funds saw total FUM rising by 89% to £33bn from January 2019 to June 2020. However, Clapp, whose RWC Continental European Equity fund is up 17% since inception in Nove...