Key Takeaways
- In the second quarter of 2024, the global universe of sustainable open-ended and exchange-traded funds attracted an estimated USD 4.3 billion of net new money, compared with restated outflows of USD 2.9 billion in the first quarter.
- European sustainable funds garnered USD 11.8 billion, up from the restated USD 8.4 billion in the previous quarter.
- In the US, investors continued to pull money out of sustainable funds, but less than in the previous quarter. Redemptions in the second quarter amounted to USD 4.7 billion, about half of the USD 9 billion registered in the first quarter.
- There were reduced outflows in Japan too, while sustainable funds in Asia continued to attract net new money.
- Supported by stock price appreciation, global sustainable fund assets stood steady at USD 3.1 trillion at the end of June 2024.
- Product development continued a downward trajectory, with 77 new sustainable fund launches in the second quarter. While this number is likely to be revised upwards, it confirms the normalization of product development activity in this space.
