100 Large ESG Funds Post Negative Returns, All but One – OPIMAS Report | Jobs Vox

BlackRock ranks as the largest ESG asset manager with 20 of the top 100 funds under management at $110 billion. DWS Group is ranked second by AUM at $36 billion (comprising 11 funds), followed by Parnassus Investments at $33 billion (across three funds).

Collectively, the top 100 funds have total AUM of about $441 billion.

The funds in the study “all rely on one or more ESG elements in their investment strategy,” Opimas analyst Anne-Laure Fubert said in an email.

The best-performing money market fund among the top 100 ESG funds, the Morgan Stanley Institutional Liquid Fund ESG Money Market Portfolio, had a one-year return of 1.2 percent through Oct. 31. All 99 other ESG funds posted losses during that period.

The largest individual ESG fund is the Parnassus Core Equity Fund with $22.9 billion in assets.

By geography, 60 of the top 100 funds are located in the EU, 32 in the U.S. Among non-EU countries in Europe, the UK has three funds, Norway and Switzerland have one each. The list of funds is rounded out by Japan, which has two ESG funds, and China with one.

By asset class, equity funds account for the bulk of the top 100 funds (74 funds and 81% of total AUM). Fixed income funds are 17 funds and 12% of the total AUM. Other types of funds include hybrid, money market, and real estate investment trusts.

Of the top 100 funds, 42 were launched in 2016 or later. The oldest on the list, Dutch Robeco Sustainable Global Stars Equities Fund, was launched in 1929.

Additionally, 59 of the top 100 funds are actively managed, 26 are index-based ETFs and the remaining 15 are index-based mutual funds. By AUM, actively managed funds covered $256 billion, index-based ETFs ($117 billion) and index-based mutual funds ($68 billion).

Among equity funds, the best performer for the year ended October 31 was the M&G (Lux) Global Listed Infrastructure Fund, which fell 0.1 percent. The worst performer among this segment was the BNP Paribas Energy Transition Fund, which fell 46.9 percent.

The top performer among fixed income ESG funds was the Invesco Floating Rate ESG Fund, down 3.2% for the year, while the PIMCO GIS Emerging Markets Bond ESG Fund was the worst performer, sinking 22.3%.

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