Accelerating investor appetite for ESG-related funds and strategies propelled total assets under management (AUM) at Candriam, a multi-asset manager which is part of New York Investment Management, to a record €158 billion at year end 2021.

This was an increase of €18 billion, up from €140 billion in 2020. ESG-related AUM comprised 67 percent of Candriam’s total AUM, surpassing a milestone €100 billion for the first time in the firm’s history, and reached €105 billion at year-end (31 December 2021).

Candriam’s actively managed range of thematic equity strategies, designed with the aim to have a positive environmental or social impact while providing a long-term return on investment, proved the most popular strategies with investors, attracting €2.1 billion and underpinning total net sales of €7.4 billion in 2021.

Thematic global equity continues to be an important growth area for the firm, with several new hires made in 2021 and further fund launches anticipated in 2022. Equities were the most popular asset category in 2021, representing almost 50 percent of the year’s inflows (€3.9 billion), while bonds, such as global high yield, attracted 26 percent (€2 billion). Absolute return and asset allocation attracted 30 percent (€2.2 billion) of total inflows.

The firm’s net sales and AUM growth last year was underpinned by continued outperformance relative to benchmarks across its diverse product range. Over half of Candriam’s funds were awarded 4 or 5 stars by Morningstar at the end of 2021.

Constructive engagement and ESG proxy voting are two key sustainability performance drivers for Candriam. In 2021 the firm participated in 2060 meetings with portfolio companies and voted on 26,605 resolutions.

Candriam opposed around 25 percent of total management resolutions, particularly in relation to ‘Say on Climate’, where Candriam considered a company’s climate transition plan to lack the sufficient detail needed in order for Candriam to have an informed vote.

Naïm Abou-Jaoudé, chief executive of Candriam & chairman of New York Life Investment Management International, said: “I would like to thank our clients who continue to put their trust and confidence in Candriam, recognizing our role as a pioneer in sustainable investing, driven by its core values of conviction and responsibility. As a result of this, we were able to achieve another record year of AUM, continuing our growth trajectory where we’ve seen assets double over the last seven years.”