SEC Asks for Comments on ESG Fund Names

EC inspired by increased demand 

With a recent boom in funds named ESG (Environmental, Social, Governance) the SEC (Securities and Exchange Commission) wants to ensure money managers are not falsely advertising.

The SEC requested public comment on whether ESG products should follow existing rules requiring a fund’s name to match its investments.

The Boom

ESG Funds attracted $21.4 billion of new money in 2019, totaling $137 billion of assets.

The number of funds in various sustainable names

• ESG – 331 
• SRI – 208
• Sustainable – 162
• Green – 49
• Social – 30 
• Environment – 26

Bloomberg | ESG Funds Might Soon Have to Prove to SEC They’re Actually ESG