ESG & Investing
US Investor Exodus Deals Historic Blow to Global ESG Fund Market
- European fund inflows weren’t enough to offset global trend
- Development is unfolding against backdrop of US ESG backlash
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For the first time ever, ESG funds suffered net global outflows amid a major exodus by US investors from environmental, social and governance strategies.
US fund clients withdrew a net $5.1 billion in the final three months of 2023, according to a fresh analysis by Morningstar Inc. published on Thursday. Combined with $1.2 billion of outflows in Japan, that was too severe a retreat for Europe’s $3.3 billion of net inflows to bolster the global market.