The record outflows came “amid new geopolitical challenges and an intensifying environmental, social and governance backlash,” the report noted.
While U.S. investors led the way, with $6.1 billion in quarterly outflows — which marked the 10th straight quarter of negative flows — European investors followed suit for the first time on record, pulling $1.2 billion from sustainable funds.
“Up to last quarter, European sustainable funds had consistently attracted positive quarterly flows,” the report said. “In the past quarter, however, for the first time since at least 2018, European sustainable funds suffered outflows, in contrast with the strong inflows registered by their conventional peers.”
The shift in Europe was attributed, in large part, to the shift in U.S. policy, including new anti-ESG policy measures — such as executive orders against corporate diversity, equity and inclusion (DEI) policies,…
