ESG inflows may be slowing but the party is not over

Regulation should increase uptake

clock • 4 min read

Inflows into ESG funds may have decelerated recently, but the asset class’ long-term prospects are still strong.

According to our latest Fund Flow Index (FFI) figures, ESG funds in the UK suffered their second-worst month on record in March 2023, attracting just £219m, which is two-thirds less than the monthly average over the last three years. Inflows into ESG funds are slowing down for several reasons. Calastone: ESG equity funds suffer worst ever outflows in May Firstly, ESG funds did not deliver positive returns last year, with Bloomberg noting that the ten largest ESG funds by AUM reported double digit losses, with eight of them underperforming the S&P 500, which fell by 14.8%. Invest...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

Business and Human Rights Resource Centre: Ignorance no longer a defence for unethical tech investments

Business and Human Rights Resource Centre: Ignorance no longer a defence for unethical tech investments

Tantalum’s hidden costs

Blanca Racionero Gomez
clock 11 July 2025 • 4 min read
HSBC: 'Stark' contrast between investors' approach to sustainability
ESG

HSBC: 'Stark' contrast between investors' approach to sustainability

Survey polled 144 financial services professionals

Stuart Stone
clock 10 July 2025 • 2 min read
Quilter Cheviot's renames Climate fund range as it adopts SDR label
ESG

Quilter Cheviot's renames Climate fund range as it adopts SDR label

'Sustainability Focus’ label adopted

Linus Uhlig
clock 08 July 2025 • 1 min read
Trustpilot