Global ESG and sustainable funds post first net quarterly outflow on record

Morningstar Global ESG Flow report

Valeria Martinez
clock • 2 min read

Global ESG and sustainable funds saw redemptions of close to $2.5bn in the last quarter of 2023, marking the first time net flows fell into negative territory.

According to Morningstar's latest Global ESG Flow report, the outflows from sustainable funds echoed with the substantial redemptions from the broader market open-ended funds and ETFs during the final three months of the year. Europe, the largest market for sustainable funds, saw a decrease in net inflows in the fourth quarter, attracting only $3.3bn compared to the revised figure of $11.8bn in the previous three months. This was thanks to passive funds, which collected $21.3bn, while actively-managed sustainable strategies shed close to $18bn.  Equity funds take majority of sustai...

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