Trump agenda causes record outflows from global sustainable funds

From Yahoo Finance: 2025-04-24 13:46:00

Investors pulled a record $8.6 billion from global sustainable funds in Q1, largely due to Trump’s shift against climate and social initiatives. Europe saw $1.2 billion in net withdrawals, the first since 2018. Fund performance concerns, like in clean energy, also contributed to the outflows.

Morningstar noted Trump’s return deprioritized sustainability goals in Europe, leading to new legal risks. U.S. withdrawals totaled $6.1 billion in Q1, marking the tenth consecutive quarter of outflows. This shift in perception of sustainable investing strategies is evident in consolidation, rebranding, and cautious product development, amidst an ESG backlash affecting sentiment in both the U.S. and Europe.

The first quarter saw 54 new sustainable product launches, half of the prior quarter’s total. Asset managers rebranded 335 funds, dropping or changing their ESG terms. This indicates a notable shift in the market’s approach to sustainable investing strategies.



Read more at Yahoo Finance: Trump agenda drives record outflows from global sustainable funds, Morningstar says