Morningstar Report Reveals Record $8.8 Billion pulled from US Sustainable Funds in Q1

The first quarter of 2024 saw a notable shift in the global sustainable funds landscape, with nearly USD 900 million in net new money attracted by these funds. Morningstar’s analysis highlights trends such as the rebound in investor interest, a 1.8% increase in total assets to just under USD 3 trillion, and a decline in new sustainable fund launches. In Europe, there was robust demand for sustainable investment options, while the United States faced record redemptions and a concentration of assets in a few funds. The Asia-Pacific region showed only marginal gains, and Canada experienced a rebound in flows. Morningstar emphasizes the influence of economic conditions, regulatory changes, and the preference for passive strategies in shaping the sustainable funds market. Despite ongoing uncertainties, the market is expected to continue growing, necessitating flexibility and informed decision-making from both fund managers and investors. Resources: https://esgnews.com/morningstar-report-reveals-record-8-8-billion-pulled-from-us-sustainable-funds-in-q1/