Sustainable Funds Attract New Money

Global sustainable funds attracted $32.6 billion of net new money in the second quarter of 2022, representing a fall of 62 per cent relative to the revised $87 billion of inflows in the first quarter, says Morningstar Manager Research. However, its quarterly ‘Global Sustainable Fund Flows’ shows amid investor concerns over a global recession, inflationary pressures, rising interest rates, and the conflict in Ukraine, sustainable funds still held up better than the broader market, which experienced $280 billion of net outflows over the period. Global sustainable fund assets slipped 13.3 per cent to $2.47 trillion as of June 2022 from the restated $2.84 trillion at the end of the first quarter. This was the largest drop since the first quarter of 2020 and was roughly in line with the net asset base of a year ago. Nevertheless, sustainable fund assets held up better than the overall global fund market, which saw its assets shrink 14.6 per cent in the three months through June 2022.