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

by | Oct 29, 2021

Share this article

Facebook Open Graph

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

Share this article

Related articles

Sign up to the IFA Magazine Newsletter

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode