US Sustainable Funds See Huge Outflows, Again
Investors pulled $2.7 billion from sustainable funds in 2023’s third quarter
Marking the segment's fourth consecutive quarter of outflows. Many factors are in play behind the outflows, including a challenging macroenvironment with inflation, high interest rates, and recession fears, but also ESG-specific factors such as political backlash.
Sustainability-focused product development slowed significantly in the third quarter. Fewer new funds launched than at any point in the past three years. While the sustainable funds sector faced challenges this quarter, regulatory advancements and the growth in the number of funds suggest potential opportunities for the future.
Read the full report for a complete analysis of U.S. sustainable fund flows for the third quarter of 2023.
