US sustainable funds suffer highest redemptions on record in first quarter

$8.8bn outflows

Eve Maddock-Jones
clock • 2 min read

US sustainable funds suffered their “worst-ever quarter” for redemptions, shedding a record $8.8bn in the first quarter of 2024, a report by Morningstar has found.

This marked the sixth consecutive month of outflows from US sustainable-themed funds and was over five-fold the withdrawals from Japanese sustainable funds, the only other region to record overall redemptions. Morningstar said there were several catalysts involved in the US outflows, including high interest rates, "middling returns" last year, greenwashing concerns, and the continued politicisation of ESG investing. FCA eyes extension of SDR remit to include portfolio managers The trend was inverted in Europe however, where sustainable funds gathered $11bn worth of inflows. This wa...

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