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Morningstar: New disclosure rule in Europe drives global sustainable fund assets to nearly $4 trillion

Sustainability

Morningstar has published its Global Sustainable Fund Flows report, which examines the global fund flows of 7,486 sustainable open-end funds and exchange-traded funds as of Q3 2021.

Highlights include: 

  • Following the introduction of the Sustainable Finance Disclosure Regulation (SFDR) on March 10, 2021, the number of sustainable funds captured in the global sustainable universe has grown by 51% over the third quarter of 2021.
  • Mainly driven by SFDR in Europe, global sustainable fund assets almost doubled in the past six months to reach $3.9 trillion at the end of September 2021.
  • Sustainable fund flows represented nearly half of overall fund flows in Europe in the third quarter.
  • European inflows into passive ESG funds remained strong in the third quarter, at USD 26.7 billion. This represents a 9% growth relative to the second quarter.
  • Assets of global sustainable funds continue to outpace the market. In the third quarter, global sustainable fund inflows declined by 15%, but the global fund universe overall recorded 20% lower inflows. Global sustainable fund assets increased 8% over the same period, while the overall fund market remained stable.

At-a-Glance: Global Sustainable Funds in Q3 2021

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