ESMA Working Paper-ESG funds during the 2020 COVID-19 market turmoil: performance and flows-ESG funds outperformed and received higher net flows than their non-ESG peers

February 24, 2024--Summary:
In this paper we analyse the performance and flows of ESG active equity UCITS funds relative to their non-ESG peers in a period of financial distress, corresponding to the first wave of COVID-19. Compared to other crisis events in the recent past, it has the advantage of looking at a complete exogenous shock affecting the economic and financial market as a whole.

An analysis of performance and flows of EU ESG funds versus EU non-ESG funds during stressed market conditions has been lacking so far. Moreover, it is a first attempt to address the heterogeneity within the cohort of active funds with some active funds significantly outperforming compared to others. The main findings confirm this hypothesis and show that ESG funds outperformed and received higher net flows than their non-ESG peers.

ESMA publishes latest edition of its newsletter

January 9, 2025-- The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, has today published its latest edition of the Spotlight on Markets Newsletter.

Amundi to shut its original 'multi' smart beta ETF

January 8, 2025--The fund made returns of nearly 20% last year but has failed to retain sufficient assets to be 'economically efficient'
Amundi is to close a multi-strategy smart beta exchange traded fund, the product it launched to enter the space a decade ago.

ESMA launches selection of the Consolidated Tape Provider for bonds

January 3, 2025-- The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, is launching the first selection procedure for the Consolidated Tape Provider (CTP) for bonds. Entities interested to apply are encouraged to register and submit their requests to participate in the selection procedure by 7 February 2025.

ECB-Monetary developments in the euro area: November 2024

January 2, 2025--Annual growth rate of broad monetary aggregate M3 increased to 3.8% in November 2024 from 3.4% in October
Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, increased to 1.5% in November from 0.2% in October
Annual growth rate of adjusted loans to households stood at 0.9% in November, compared with 0.8% in October