Morningstar: Global ESG funds record sharp reversal in 2025
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4 Articles
Morningstar Fund Data and Rating Provider unveiled an analysis of the difficult year of sustainable investment on all continents.
Sustainable fund outflows slow in Q4
Outflows from European sustainable funds slowed in the fourth quarter of 2025, while passive funds posted modest inflows, according to Morningstar. In Morningstar’s Q4 2025 Global Sustainable Fund Review, it was reported European-domiciled sustainable funds saw outflows of $20bn in the final three months of 2025, but this was a sharp reduction from the record outflows of £49.6bn seen in Q3. Morningstar also explained a substantial share of the o…
Funds with ESG investment objectives suffered outflows of $84 billion last year, marking the first time that the global market for these products was affected by net repayments, according to a report by Morningstar Inc. The report shows that this historic decline coincides with the first net withdrawals in Europe of products that claim to take into account environmental, social and governance factors. Meanwhile, in the US, ESG funds lost their c…
Morningstar: Global ESG funds record sharp reversal in 2025
Global sustainable open end and exchange traded funds saw an estimated USD 27 billion net outflows in Q4 2025, compared with almost USD 55 billion outflows in the previous quarter, according to Morningstar’s Q4 2025 Global Sustainable Fund Review. Redemptions by large UK institutional investors – reallocating from pooled ESG funds into bespoke ESG mandates – accounted for much of the outflows in both quarters. Yet the broader backdrop remained c…
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