ESG Funds Hit by Large Redemptions as Backlash Deepens
- Funds in US and Europe suffer outflows, Morningstar data show
- ‘Conventional equity strategies’ did better in bull market
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ESG fund managers are facing one of the toughest moments in the strategy’s history, as investment clients pull record amounts of money.
Funds complying with the European Union’s strictest ESG standards suffered record outflows last quarter, according to fresh data from Morningstar Inc. That follows an analysis by the market researcher showing ESG fund managers in the US just had their worst year ever. At the same time, a record number of funds has now scrapped ESG and related terms from their names, Morningstar reported.