---
title: ESG Funds Had Majority Of All Flows Into Equities In 2020
description: Vaccine optimism sees equity fund inflows reach 5-year high.
---

[Articles Marketmedia](https://articles.marketsmedia.com)

# [ESG Funds Had Majority Of All Flows Into Equities In 2020](https://articles.marketsmedia.com/esg-funds-had-majority-of-all-flows-into-equities-in-2020)

 Written by [Shanny Basar](https://articles.marketsmedia.com/author/shanny-basar) | Jan 13, 2021 10:16:51 AM

Inflows to equity funds surged to £2.4bn in December, according to the latest Fund Flow Index from Calastone, the largest global funds network. This was the second-best month on record and took the Q4 total to £4.6bn, its highest since mid-2015. For the whole of 2020, equity inflows were £7.5bn, almost four times as great as in 2019.

https://twitter.com/CalastoneLtd/status/1349279291624849410

Inflows to equity funds surged to £2.4bn in December. This was the second-best month on record and took the Q4 total to £4.6bn, its highest since mid-2015. For the whole of 2020, equity inflows were £7.5bn, almost four times as great as in 2019.

Key highlights from this month's FFI:

- Equity funds enjoyed £4.6bn of inflows in Q4, the highest since 2015; December was the second-best month on record for equity funds
- 2020 ended with a sharp improvement for active funds in particular – December inflows were the best in five years
- Investor appetite for ESG, global, North American and European funds boosted active equity fund flows
- But index fund flows comfortably beat active fund flows over the course of the whole year
- By contrast with other regions, funds focused on UK equities were firmly out of favour with investors – Brexit and the pandemic caused sharp outflows in the second half of the year
- UK-focused funds did receive a last-minute boost in late December thanks to the Brexit trade deal
- ESG funds went mainstream in 2020 and accounted for more than half of all the flows into equity funds for the year

Source: Calastone

[View full post](https://articles.marketsmedia.com/esg-funds-had-majority-of-all-flows-into-equities-in-2020)

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