Funds that firms were hoping to give a new lease of life by rebranding to an ESG favourable name at the beginning of the year have seen a drop in flows, according to Morningstar numbers for Investment Week.
This, combined with the recent market volatility may serve as a reminder to firms that "a new name and some fancy imagery" will not be enough to sway investors, according to experts. In January alone, five UK domiciled funds rebranded to use words such as ‘sustainable' in their name. Since then, there has been a steady stream of announcements from fund managers announcing ESG friendly changes and associated marketing for funds. However, it seems investors have not been swayed by this tactic, as figures from Morningstar for Investment Week show that from February this year until May, ...
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