We find ESG investing has worked best in Energy. Our ownership analysis finds US ESG funds increased their exposure to Energy most, and reduced their exposure to Tech.
In an unstable market, it can be futile to search for catalysts behind every shock. Instead, last week’s risk asset selloff validated our calls that fragility risks were rising.
Flows into the IG funds space have accelerated over the past couple of weeks. As we have highlighted in the past, a low rates vol environment is supportive for credit spreads and fund flows into the sector.