Tech sector turmoil poses a threat to sustainable funds

European asset managers are less resilient and less sustainable than they were at the onset of the financial crisis, says Neil Scarth, of Frost Consulting.

The breakneck expansion of the ESG sector could stall if performance starts to approach or underperform benchmarks, writes the FT. | Photo: Pexels: Karolina Grobowska.

Environmental, social and governance-focused funds face a more uncertain outlook in 2022, as pressures mount from research costs and hits to the big growth stocks that have helped power the investments' outperformance, reports

ESG inflows boomed throughout 2021, even as they slowed in pace towards the end of the year, with global sustainable fund assets doubling in the six months up to September 2021 to reach USD 3.9trn, according to data provider Morningstar.

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