Morningstar: Q2 sustainable fund flow decline not a 'slowdown in the trend'

Morningstar cites Europe’s new disclosure standards

clock • 2 min read
Morningstar's global director of sustainability research Hortense Bioy

Morningstar's global director of sustainability research Hortense Bioy

Net inflows into sustainable funds faltered in the second quarter of 2021 led by Europe, where inflows fell 25%, although sustainable assets notched up 12% growth globally, according to Morningstar.

The latest Sustainable Fund Flows report revealed that net inflows declined across the board in the second quarter, down 24% to $139.2bn globally from an all-time high of $184bn in the first quarter, although flows into sustainable funds remained well above 2020 levels. Morningstar said that Europe accounted for more than 81% of these flows but that it "remains by far the most developed and diverse ESG market", while the US accounted for 13%, having registered a "more moderate decline" in sustainable net flows of 18% over the period. Investment Week reveals finalists for Sustainable &...

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