Sustainable Funds Rebound With Global Inflows of $4.9 Billion

Sustainable Funds Rebound With Global Inflows of $4.9 Billion

The global market for sustainable funds recovered in the second quarter after posting record-high redemptions during the first three months of the year, according to an analysis by Morningstar Inc.

Global sustainable fund flows rebound to $5bn in Q2

The fund flows picture for global sustainable funds improved in the second quarter, despite the geopolitical tensions, regulatory uncertainty and ESG backlash.  Morningstar’s latest update shows global sustainable funds saw $4.9bn in net inflows in the three months to 30 June – a “notable rebound” from the record-high $11.8bn outflows in Q1.  This was largely driven by European investors that directed $8.6bn of new flows – another reversal as in…

ESG makes Q2 comeback with $4.9bn global inflows

Europe drives a turnaround for ESG strategies as the category attracts inflows one quarter after record redemptions.

Latest ESG fund flows are in, not out

Data from Morningstar for Q2 2025 point to a reversal of investor attitudes towards ESG funds, with $4.9bn of net inflows measured globally versus the redemptions of $11.8bn seen in Q1. In Europe, the inflows were higher still, accounting for $8.6bn of net new money into ESG funds, reversing the redemptions of $7.3bn seen in

Morningstar: European investors drive ESG fund revival amid global challenges - Wealth DFM

Despite tensions and regulatory uncertainty, the picture is looking up for ESG funds. Morningstar’s latest report reveals that in Q2 this year, global ESG funds recorded an estimated net USD 4.9 billion in the second quarter of 2025 – a notable rebound from the record-high restated redemptions of USD 11.8 billion in the first quarter. European investors drove this recovery, pouring USD 8.6 billion of net new money into ESG funds over the past th…