The momentum will likely persist, with early indications that corporates with good ESG ratings are exposed to less systemic risks and are more resilient to shocks. Since the onset of COVID-19, 24 of 26 Morningstar6 sustainable index funds outperformed their closest conventional counterparts, while global sustainable openended funds registered net inflows of $ billion in 1Q 20207, over 40% more yearon-year, despite a weakening in global market conditions. Foundations, trusts, and family offices are also well placed to drive positive change through your investments and your business operations. Impact investing serves to bridge 12.  the gap between philanthropy and asset management. Allocation to impact funds managed by private equity and venture capital managers will allow investors to make a positive impact, while generating market competitive financial returns. I am glad to see that AVPN has dedicated a full day during this conference to impact investing, covering topics such as impact management and maximising social impact within 13.  family offices. While impact investing is still a nascent development, there has been good progress. Close to 100 asset managers and institutional investors have signed the Operating Principles for Impact Management, which provides a set of market standards on how to achieve measurable positive environmental and social outcomes, alongside financial returns. In May 2020, the Global Impact Investing Network (GIIN) formed a Response, Recovery, and Resilience Investment Coalition with AVPN and other networks and foundations, to coordinate efforts and direct capital to high impact solutions in response to the pandemic.
1 International Monetary Fund (IMF), 6 April 2020, World Economic Outlook, April 2020: The Great Lockdown 2 Euromoney, 7 April 2020, Coronavirus crisis offers green and social bonds chance to prove their worth 3 World Bank Press Release No: 2020/180/HNP, 27 April 2020 4 Infrastructure Asia and World Bank Press Releases, 1 June 2020 5 Global Sustainable Investment Alliance, April 2019, 2018 Global Sustainable Investment Review 6 Morningstar, 3 April 2020, Sustainable funds weather the first quarter better than conventional funds;  Morningstar, 28 May 2020, What the pandemic means for sustainable investing 7 BlackRock compilation at 18 May 2020, Sustainable investing: resilience amid uncertainty  4/4  BIS central bankers' speeches