From Morningstar: 2024-11-13 10:10:35

Global ESG funds saw a significant increase, attracting USD 10.4 billion in Q3 2024, up from USD 6.3 billion in Q2 and USD 4.8 billion in Q1. Europe led the way with sustainable bond funds surpassing conventional bond funds. Organic growth rate for ESG funds rose to 0.33%, while total fund inflows reached USD 373 billion.

Europe maintained its position as the largest ESG market, with 84% of global assets. The region saw a slight decrease in subscriptions in Q3 compared to Q2. Article 8 funds collected EUR 38 billion, accounting for 56% of total fund assets. Article 9 funds experienced continued redemptions, with a 0.7% organic growth rate for Article 8 funds.

Article 8 bond funds outperformed Article 6 equivalents, pulling in EUR 45 billion in Q3. Fixed income assets showed notable recovery, offering attractive yields and protection against price changes. Flows into Article 8 and 9 equity strategies lagged behind Article 6. Combined assets in Article 8 and 9 funds remained at EUR 6 trillion.

Europe saw a decrease in new ESG fund launches, with 43 in Q3. Article 8 and Article 9 funds accounted for 56% of total new funds. Rebranding activity in the ESG landscape included changes in fund names to reflect evolving investment objectives. More funds are expected to comply with ESG guidelines by May 2025.



Read more at Morningstar: Global ESG Funds Attract $10.4 Billion in Q3 2024