Interest among US investors in sustainable investment funds surged in 2019 amid mounting fears about the risks posed by climate change to the global economy.
Investors ploughed a record $20.6bn into US sustainable investment funds, almost quadrupling the $5.5bn of net inflows gathered in 2018, according to Morningstar, the data provider.
Assets held in the 300 funds surveyed by Morningstar jumped to $137bn at the end of 2019, up 54 per cent on the previous year end.
Morningstar restricted its analysis to funds that it judged had thoroughly integrated environmental, social and governance (ESG) standards into their portfolios. It also included funds that pursued sustainability-related themes as well as funds that provide sustainability metrics alongside financial returns.
This represents a tiny fraction of total US fund assets but large scale public protests demanding action on climate change are helping push asset managers to incorporate ESG measures into their investment processes.
“With growing interest in sustainable investing, especially among younger investors, 2019’s record inflows may be the leading edge of a huge wave of assets to come,” said Jon Hale, global head of sustainability research at Morningstar.
BlackRock last week signalled its determination to put climate risks at the heart of its investment decisions. Larry Fink, chief executive, said in his annual letter to CEOs that companies, investors and governments “must prepare” for a significant reallocation of capital because of the risks of global warming.
BlackRock plans to double the number of ESG exchange traded funds it offers to 150 by 2021 and to begin offering sustainable versions of its model portfolios.
Rival managers will undoubtedly follow with competing products. Expect the rush to launch more sustainable funds to accelerate sharply in 2020.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
