|
Sustainable mutual funds and ETFs, including those using
environmental, social and governance (ESG) factors, notched a
"modest" $528 million of net new deposits in June after shedding
$3.2 billion the month prior, according to Morningstar's latest
figures. [L1N2Y31MK]
"Investors may have turned back to ESG and renewable energy,
thinking that the worst of the downturn was already priced in,"
said Alyssa Stankiewicz, Morningstar’s associate director of
sustainability research.
Investors' ESG commitments have been tested this year by the
onset of a bear market, driven by rising interest rates and
concerns over a potential recession, as well as underperformance
by U.S. sustainable funds.
Indeed, the positive flows in June could not reverse a marked
slowdown in momentum for sustainable funds during the first half
of the year.
Sustainable funds attracted $9.0 billion in net new deposits
during the six months ended June 30, far below the $39.4 billion
they gathered during the same period in 2021, according to
Morningstar.
Most sustainable funds are equity funds, which have also
experienced inconsistent flows this year amid stock market
volatility.
U.S. equity funds gathered $14.8 billion in net new deposits in
June, their fourth month of inflows this year, according to
Morningstar.
Investors pulled $61 billion overall from U.S. long-term mutual
funds and ETFs last month. It was their third consecutive month
of outflows, the research firm said.
(Reporting by Cole Horton; Editing by Sam Holmes)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
