Over half US asset managers looking to create ESG investment solutions - Cerulli

Jonathan Boyd
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Over half US asset managers looking to create ESG investment solutions - Cerulli

Research by consultant Cerulli suggests that more than half of asset managers in the US are looking to create ESG investment solutions - as active managers seek to capture an edge against passive products, and amid an increasing focuse on wealth transfer between generations, with younger investors seen to view ESG more favourably.

The finding is contained in the latest issue of The Cerulli Edge—U.S. Monthly Product Trends Edition , which looks at mutual fund and ETF product trends.

Further, the research suggests that although some 42% of sponsors in the subadvisory space have indicated use of ESG factors is "not important" when choosing a subadvisor, this figure is down from 69% in the past year. Cerulli notes that more explicit demand from end clients is likely to be the critical driver of more adoption of ESG in this space, reflecting the idea that besides performance identified through quantitative screening, what sponsors are looking for are value adding services that subadvisers can provide.According to the Cerulli data, US mutual fund assets have topped $15.3trn as of the end of April, having received net inflows of some $95.7bn since the start of 2019. ETF assets rae close to $4trn, up 15.6% since the end of 2018, with net inflows of some $85.2bn.

These findings and more are from: The Cerulli Edge—U.S. Monthly Product Trends Edition, May 2019 Issue

Jonathan Boyd
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Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.