The latest data from the Investment Association (IA) reveals that investors placed £5.4bn into open-ended sustainable funds last year, a figure that is more than £100mn per week but still less than the asset class attracted in 2021.
The data showed that over £15bn was placed into the asset class into 2021, which was prior to interest rates rising.
Higher interest rates are generally regarded as being a negative for sustainable investments because they are generally growth assets.
The figures exclude sustainable assets held within the investment trust structure.
Chris Cummings, chief executive of the Investment Association, said he regarded the sustainable and responsible investment universe as key to the growth of the funds universe in the UK.
The figures can be seen in the wider context of total assets under management for the UK asset management industry being £8.8trn in size, with £4.6trn managed on behalf of UK-based institutions and clients, and £4.2trn on behalf of international clients and institutions.
Within that, £1bn a month every month on average withdrawn from UK equity products during the course of 2022, while there were 46,200 people employed directly in the asset management industry.
David.Thorpe@ft.com
 (1).jpg){kind=logo}
