And the category is promising. Investors placed €54.6bn in European sustainable funds during the second quarter of 2020, up from €26bn the previous quarter, according to the research firm Morningstar. Separately, Morningstar found that European sustainable funds outperformed their peers over the 10 years to 2019.
Why?
Denise Voss, chair of Luxflag, an outfit that checks fund managers’ sustainable and responsible investing claims, addressed that question during a Delano Live Chat on Wednesday.
Voss explained the difference between philanthropy, impact investing and “ESG” (environmental, social and governance) funds. She also discussed the new EU sustainable finance rules which start taking effect next year, and why the sector is becoming increasingly important to the Luxembourg fund industry.
In addition to chairing Luxflag, Voss is an independent board and fund director. She previously chaired the Association of the Luxembourg Fund Industry and served as a conducting officer for Franklin Templeton in Luxembourg.
Voss spoke with Delano’s Aaron Grunwald and also took audience questions.