Combined with a huge decline in the pace of inflows in Europe, the global market for funds claiming to pursue environmental, social or governance goals suffered its first-ever net redemptions last quarter, according to Morningstar.
After the worst quarter in its roughly two-decade history, ESG’s future is once again a subject of intense debate.
Against a backdrop of attacks by the Republican Party and lacklustre returns, ESG funds in the US bled more than a net US$5 billion ($6.70 billion) in the final three months of 2023.
