Blog written by John Fleetwood of 3D investing
The Sustainability Market Explodes
When Pennine Wealth Solutions launched the Positive Pennine Portfolios in August 2016, sustainability and the consideration of Environmental and Social Governance factors in investment (ESG), was a growing but small part of the investment universe. In 2019 this all changed.
According to Morningstar, more than €120bn (£101.8bn) was committed to European ESG funds last year driving assets 58% higher in just 12 months, to a total €668bn (£601bn). In the final three months of 2019 this accelerated further with the commitment of £40.4bn. Last year 360 new sustainable funds were launched in Europe, bringing the total up to 2,405.
Source: Bloomberg, Morningsta
Allocations to passive sustainable funds also grew in 2019, with passive funds now accounting for 21% of sustainable assets across Europe, up from 14% five years ago. This is being replicated in the US. Earlier this year, US fund giant, Blackrock, put out a statement that it will double the size of its sustainable ETF (exchange traded fund) range to 150 strategies, and will aim to increase the sums managed in ESG mandates more than tenfold from $90bn to $1tn within a decade.
Another sign of sustainable investing entering the mainstream, was the announcement by Aviva Investors in July 2019 that they would be offering a default sustainable strategy on their workplace pension.
If you invest in the Positive Pennine Portfolios, this doesn’t just mean that you are in good company, but the increasing number of funds is bringing more choice and enabling a wider spread of funds to be held. This helps to reduce the overall portfolio risk and also sends a message to the market that sustainability matters is set to become a priority for the financial markets in future decades.
If sustainability market is something you are interested in please note that the Positive Pennine Portfolios are only accessible via a Financial Adviser. If you are a Financial Adviser and would like more information about the range of portfolios, please contact Sean Fisher on 07583 241668 or
Investors should remember that the value of investments, and the income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results. Any mention of specific security should not be interpreted as a solicitation to buy or sell specific security.
Positive Pennine is a trading style of Pennine Wealth Solutions LLP, which is authorised and regulated by the Financial Conduct Authority and is only available through authorised Financial Advisers