FPXE - Covid The Catalyst For ESG In Credit

• Issuers and investors alike are embracing Environmental, Social and Corporate Governance (ESG) as core financing or investment philosophies.
• The majority of the inflows seen in Euro IG funds have been into ESG funds. In fact, non-ESG funds have generally seen outflows. It is also visible that most outflows seen from non-ESG funds have been swapped over to ESG funds in the same asset class.
• Covid has acted as a catalyst for that higher ESG demand, and longer term, ESG will outperform as demand is insatiable and supply is lagging behind. Fund flows, supply and regulation are all pushing the trend.

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