The ESG swing
Ethical and sustainable funds were also among the best performers in the six-monthly shake up.
Nearly a fifth of all such funds eligible for a rating achieved the highest possible five-crown accolade, with the sector now accounting for 8.5 per cent of all five-crown rated funds despite making up just 5 per cent of funds in the crown-rating universe.
Oliver Clarke Williams, portfolio manager at FE Investments, said there was “no doubt” environmental, social and governance investing had taken off in the past year, with record inflows and increasing investor attention.
He added: “They now make up a significant proportion of the best performing funds. We expect this trend to continue in 2021 with new regulations coming into play, meaning funds will have to be more transparent with their ESG disclosures.”
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