Fund Managers Saw Historic Withdrawals From ESG Labels Last Year

Funds with ESG investment goals saw $84 billion in outflows last year, marking the first time the global market for such products was hit by net redemptions, according to a report by Morningstar Inc.

The historic pullback coincides with the first ever net withdrawals in Europe from products claiming to take environmental, social and governance factors into account, the report showed. In the US, meanwhile, ESG funds lost client money for a third consecutive year, Morningstar said on Wednesday.