Sustainable funds face investor flight – 09/15/2023 – Panel SA

Sustainable investment funds (SI), linked to companies engaged in responsible socio-environmental practices, lost 34% of their shareholders in the last 12 months.

According to the list from Anbima (Brazilian Association of Financial and Capital Market Entities), the 55 funds in this category currently have assets of R$5.2 billion.

The flight of investors was driven mainly by the brokerage and manager Warren, whose Warren Green fund accounted for 77% of the exodus in the period.

Of the 7,589 shareholders who left IS funds from September 2022 to August this year, 5,844 were Warren shareholders.

The second biggest drop was 39.4%, recorded by a Schroders fund, which lost 130 shareholders.
On the other hand, there are cases in which growth was recorded. Bradesco’s IS fund jumped from 273 shareholders to 679, an increase of 148%.

The movement registered by IS funds generally goes in the opposite direction to that of the market in general. According to Anbima, the number of shareholders in investment funds rose 12%.

Other side

Warren says that the ESG agenda faces seasonal challenges and also suffers from the drop in risk appetite caused by a high interest rate scenario, given that a large part of these funds are linked to variable income.

“In relation to the Warren Green FIA, we remain confident in its strategy, which since its launch has already accumulated a performance of 36.57% above the Ibovespa”, said the company in a note.

Schroders considers the fluctuation of investor interest to be natural.

“Sustainable investment funds in Brazil are taking their first steps and should gain more and more relevance,” he said.

With Diego Felix

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