Sales & Marketing | 04.30.25
Morningstar Data Show Record Outflows From Sustainable Funds
by: Ross Kerber
Investors withdrew a record $8.6 billion from global sustainable funds in the first quarter, according to data from Morningstar, which attributed the outflows largely to the shift against climate and social initiatives by the current U.S. administration. The biggest driver of the outflows came in Europe, which still accounts for most of the $3.16 trillion in the funds globally. Net withdrawals from European sustainable funds reached $1.2 billion in the first quarter, a reversal from net deposits of $20.4 billion in the prior quarter and the first net outflows for the region since at least 2018. Fifty-four new sustainable products were launched in the first quarter, compared to 105 launched the prior quarter. Asset managers rebranded 335 sustainable funds in the first quarter such as by dropping or changing their ESG terms, more than twice as many as in the prior quarter.
Read the full article on Reuters