BlackRock predicts the Covid-19 pandemic will accelerate already record inflows into sustainable investment funds, after the world’s largest asset manager found these products demonstrated a distinct performance edge during the recent market sell-off.

Research conducted by the $6.5tn US fund manager found that during the first quarter of 2020, open-ended funds with high Morningstar sustainability ratings generated better financial returns than those ranked lower. The findings come after BlackRock made a pledge in January to become a global leader in sustainable investing.